NeuCoin Project update:
Foundation to cease supporting NeuCoin services, destroy its remaining coins and dissolve itself
Nearly 3 years after the NeuCoin Project was born, the founding team and the NeuCoin Growth Foundation have concluded that the Project’s plan to create a leading consumer-driven digital currency based on the premise of distributing tokens to all participants that help drive growth and adoption – consumers, service providers, distribution partners, miners, developers, etc – has proven unfeasible, at least with the current team, structure and resources.
The cryptocurrency community showed lower support than expected to the Project as evidenced by the lack of value and trading volume of NeuCoin on the exchanges, but an even greater challenge proved to be the significant fraud associated with the “freemium” model of distributing tokens. As a result:
The Foundation has been unable to strike the necessary distribution partnerships, as partners are not interested in working with a cryptocurrency that has very little value, volume or community involvement. The Project’s most recent release - the Facebook game SongQuest, a pilot aimed at demonstrating how NEU distribution can benefit third-party game publisher partners - has not performed in a way so that it can serve as a blueprint for any meaningful distribution partnerships.
The Foundation has not been able to sell sufficient NeuCoin tokens to continue operating its services, nor to fund continued development, marketing, infrastructure, site maintenance or user support, nor to handle the future enforcement of sale-restricted NeuCoins and distribution as they come unrestricted.
Given these challenges and lack of financing, the NeuCoin Growth Foundation has made the decision to cease supporting all of its services, hand over consumer distribution vehicles to partner Jango.com, destroy all of its remaining NeuCoin holdings and dissolve itself – according to the following schedule:
Growth Accounts on MyNeuCoin were terminated on Dec 4, 2016. All deposits that were placed in Growth Accounts were returned along with accrued Rewards through the termination date to the Growth Account holders’ MyNeuCoin accounts. Growth Account Rewards were calculated as follows: the number of NEU deposited in the Growth Account TIMES the number of days the Growth Account was active TIMES 0.5%. This formula gives all GA-holders, regardless of which type of GA they had created, a premium over the original rates
The GetNeuCoin website, the NeuCoin Forum and all user support services will be shut down in the near future.
The MyNeuCoin online wallet will be shut down in the near future. For the six months after the MyNeuCoin service is terminated, account holders will still be able to use their account credentials (email and password) to log in and obtain the private keys to their NeuCoin holdings. They will be able to use these private keys along with a downloadable wallet to access their NeuCoins.
50% of all sale-restricted NeuCoins, all of which were held in trust by the Foundation, have been destroyed; the remaining 50% were released to their owners as unrestricted NeuCoins. This was necessary because with the Foundation dissolved, there will be no future entity to enforce the sales restrictions. Destroying 50% and releasing 50% without restrictions was deemed as the most fair to both restricted NEU holders and non-restricted NEU holders.
In order for some entity with technical resources to support NeuCoin’s continued consumer distribution, a longer-term partnership has been established with existing distribution partner Jango.com. The Foundation has transferred 300M Neu to the Jango team (excluding Dan Kaufman, who has not had any role or ownership in Jango since 2013) as follows: a) 200M as compensation for NeuCoin tipping platform implementation and user acquisition over 2015 and 2016; for continuing to distribute NEU to Jango users and other consumers; and for continuing to maintain the NeuCoin.org website, blockchain explorer and source code publication on Github; b) 100M to be used for distribution to consumers.
After all of the above has been completed, the Foundation will destroy all of its remaining NeuCoins and dissolve itself. At this point, NeuCoin will be entirely decentralized with a total supply of NeuCoins equalling approximately 1.5 billion, all of which will be unrestricted.
To everyone who has supported NeuCoin over the past years, the founding team is truly sorry that the Project’s ambitious overall strategy and consumer product releases did not work out as planned. We have worked extremely hard on what we believed could break cryptocurrency into the mainstream, investing years of time and nearly $1 million of our own capital. We very much regret this disappointing outcome for everyone involved.
In any event, NeuCoin will continue to exist going forward as a fully decentralized cryptocurrency with a much lower coin supply. In an optimistic scenario, the Jango team might be able to solve the problems with freemium distribution. We all hope for this outcome that could lead to widespread consumer adoption of NeuCoin and the development of an organic ecosystem.
For more background and details, please see the NeuCoin Project's blog posts: