Creditbit, the MIT/X11 licensed cryptocurrency project, just updated the crypto community about its distribution mechanism on Bitcoin Talk.
The update talked about how one of the key attributes of the newly minted CRBIT coins is that Creditbit has to tackle the problem of minting and distribution of newly minted coins on their own. And how they want to keep the currency and its management transparent and based on democratic principles.
Further, the update discusses the three Minting Processes involved in minting CRBIT coins – Migration, Proof of Pawn/Trust Distribution Mechanism and DevPromo Funds. You can read more about the minting processes here.
Proof of Pawn or Proof trust is a concept. The term itself is up for vote as Creditbit wants the community to vote on what to use from ‘pawn’ or ‘trust’.
Under Proof of Pawn/Trust Distribution Mechanism, a minting plan will be proposed from the Development Team, some key settings of minting plan will be decided within migration.
The community will be involved in the minting of new tokes under Proof of Pawn/Trust. The community will be able to vote for predefined proposals on how many new tokens will be minted and distributed in next time periods.
At migration, each depositor will be able to vote for a favourite proposal, his/hers vote will be weighted by an amount of migrated coins. Later votings will be managed by CreditBit DAO organization.
The Proof of Pawn/Trust puts complete onus on the community to select or even change this minting plan in a later future.
For each owner of tokens to participate in a distribution process, he must candidate with an act of Trust to Community. Locking a certain amount of Tokens will enable him to participate in different modes of distribution.
With holding long position on tokens (locking), you are not able to create a transaction with these tokens, although they still belong to your public address.
More details about the mechanisms to be published by Creditbit in next posts by next week.
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