I’m a long term token investor (not miner) simply because I believe in the fundamentals of this project. I have enough coins in this project to buy a house, but I’ve never sold a single one. However, I think it suffers from certain drawbacks largely stemming from its origins as a nerd coin. Hopefully this will spark some discussion about we might more effectively grow the community.
First of all, if sparse random consensus is so fast (and it seems like it should be), then why is NKN being more or less exclusively marketed as a network service token? Yes, network services are an obvious application, but if the latency and transaction costs are so low, then we should think of it as a form of money, and moreso than any slower coin such as Bitcoin or Ethereum 2.0. Much has been made of how proof-of-work is more secure than proof-of-stake, but that’s like saying a 1000-digit random password is more secure than a 500-digit random password; the distinction is irrelevant in light of plausible adversaries.
You might be tempted to point out the recent hackathon products, such as nRide. They’re inspiring and serve to illustrate where the token could go. But they’re also an indication that NKN has been improperly branded from the getgo. We should think of it as money – full stop – which just happens to have immediate utility in the network optimization area.
The second major problem is social in nature. We’ve seen the number of network nodes grow and shrink, then grow again, in fits and starts, month after month. I suspect this is due to the abysmal economics of NKN as a network token; it takes amateur miners some time to realize this. In its early days, Filecoin had the same problem: the token compensation was far too small to adequately compensate storage nodes for their services. However, as awareness of the project grew (thanks largely to an expanding social footprint on multiple platforms and listing on multiple exchanges), it appreciated enough to create a truly sustainable ecosystem. The only thing preventing NKN from achieving the same breakthrough is its tiny and awkward media presence, largely here on this forum.
The difference between successful meme coins (such as Shiba Inu and Dogecoin) and NKN could hardly be starker. To a certain extent, this is a good thing because we don’t want the project management to be overrun by coin shillers and salesmen. But we can learn from their success. Meme coins have major cryptocurrency analysts covering them on YouTube because their armies of fans contact those analysts. They have a massive presence on Twitter. (Even the detractors sometimes help to improve the ecosystem.) They have Facebook groups, TikTok videos, Telegram channels, etc. Social media is a mountain of garbage. But as much as it pains me to admit this, it’s also how revolutions are born, and NKN is a revolution desperately wanting to happen.
What do people think about these issues?