It’s no secret that Nxt is one of the most hated cryptocurrencies around.
One of the main criticisms about Nxt is the unfair distribution that saw a huge percentage of the initial coin supply end up in a few hands.
Next Horizon has a plan to fork Nxt and improve the distribution. After all, an unfair distribution really limits the growth of an altcoin, especially one that is 100% Proof-of-Stake.
The NHZ ANN thread explains the goals of the project. “NHZ was created to to address the distribution problems of NXT and its clones. The IPO strategy always means that all coins are distributed right from the start, making the initial owners earn money on the cost of the later adopters. The coin is used for speculation only, and anyone interested in stability always has to fear that one of the big initial stakeholders wants to take his profits. We think that distribution of a coin should be done over a longer period of time and to more people to avoid being dragged into pump and dump schemes. Because of that, the coins will be distributed by the core developers over a period of approximately 2-3 years. There are several types of bounties through which everyone who invests a bit of time or money can get some NHZ.”
The basics are easy to understand. Somebody likes the Nxt platform, but doesn’t care for the distribution and is now set to launch their own experiment to see if a more ‘fair‘ distribution will make a difference. Distribution is a constantly-debated issue in the world of cryptocurrency. Traders love to think they’re getting a ‘fair‘ shake, even though in almost all circumstances this couldn’t be further from the truth.
Concentrating a large percentage of wealth in the hands of a few early investors can’t help but stunt the long-term growth of a crypto. It makes those initial insiders more likely to hoard funds. It also makes them hostile to outsiders, resulting in a real problem attracting new people. Since there’s no flow of new people, the coin price over the long-term tends to stagnate.
Clones, on the other hand, face their own uphill battle to achieve success. After all, people are always going to be more impressed with an original than a copier. In the world of altcoins, though, this issue does not always make a critical difference. There are examples of many relatively successful clones operating.
Next Horizon is probably likely to gain a lot of attention because they’re rewarding node operators for running their services. Getting people to run nodes requires a reward because it’s not free. Cloud-based nodes can end up being costly in terms of both time and money to run, so directly paying node maintainers could really help Next Horizon grow.
At this stage of the game NHZ is a completely speculative endeavor. NHZ has been around since March 31 and their accomplishments up until this point have been minimal. There really is no need for a new coin, other than the stated claims of distributing it better. The project will end up being judged on those merits alone. It should be interesting to see how far they get.
We’ll be watching.
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