September 1 at 00:00 UTC marks the official start of The NuCypher WorkLock, a novel node distribution mechanism that will be used to launch the network. Participants in the WorkLock bid by locking Ethereum (ETH) into a smart contract in order to receive NU tokens and use them to run NuCypher (Ursula) nodes.
Node operators receive fees (from network participants in exchange for data-encryption) and token-based rewards (from the network’s inflation) in return for providing useful work to the network. In addition, by running NuCypher nodes and staking the WorkLock NU tokens, all of the participants’ original ETH will be returned.
The lockup period for ETH will be six months from the launch of mainnet, depending upon the amount of work performed by the node. NuCypher will allocate 225,000,000 NU tokens (22.5% of the total initial supply) to reward participants in the WorkLock.
NuCypher requires participants to escrow a minimum amount of ETH to receive the NU tokens necessary to run a node; this minimum amount of ETH will be equivalent to $2000 USD. The exact amount will be dictated by the ETH to USD exchange rate at the time of contract deployment (on Sept. 1). In exchange for that minimum amount, a participant will receive 15,000 NU, the minimum stake necessary to run an Ursula node. If a participant decides to lock “bonus” ETH (an amount above the minimum), she will receive additional NU tokens based on the total number of participants in the WorkLock and the total amount of “bonus” ETH locked by all participants.
The maximum stake any individual WorkLock participant can receive is 30,000,000 NU. If a bid is submitted that exceeds the cap, ETH will be partially refunded to the participant. The max bid size is determined by the bids of all other contributors. Please email us at firstname.lastname@example.org for help if you are concerned you may hit the cap.
|Total WorkLock NU||225,000,000 NU|
|Minimum ETH Escrow||$2,000 worth of ETH at time of contract deployment|
|Minimum NU Allocation per Participant||15,000 NU|
|Maximum NU Allocation per Participant||30,000,000 NU|
|WorkLock Contribution Window||Ends 9/28 23:59 UTC|
|WorkLock Cancellation Window||9/29 00:01 UTC to 9/30 23:59 UTC|
|WorkLock Participants||Variable amount|
|Total WorkLock ETH Contribution||Variable amount|
Here are a few examples of how the process is expected to work. These examples assume a minimum escrow of 5 ETH. These examples are illustrative and actual results may differ. For additional detail on the formulas that govern the distribution process, refer to NuCypher’s documentation.
Charlie wants to participate in the WorkLock and has 100 ETH (5 ETH + 95 “bonus” ETH) he is willing to lock up. The bidding period ends with 500,000 ETH total deposited in the WorkLock by 1000 participants.
Liz wants to participate in the WorkLock and has 505 ETH (5 ETH + 500 “bonus” ETH) she is willing to lock up. The bidding period ends with 500,000 ETH total deposited in the WorkLock by 1000 participants.
Joan wants to participate in the WorkLock and has 505 ETH (5 ETH + 500 “bonus” ETH) she is willing to lock up. The bidding period ends with 500,000 ETH total deposited in the WorkLock by 5000 participants.
* If a participant plans to run her own node, she can lock her ETH into a WorkLock smart contract using two methods:
Bison Trails is not developing pooled delegation at the moment and can only support 1 staking node per token holder. If someone creates a pooling smart contract, we will consider adding support for pooling.
Bison Trails assists customers with all steps in WorkLock participation and NuCypher staking, including providing custom instructions for unique self-custody configurations. Contact us at email@example.com to get started.
If someone doesn't have the minimum ETH amount or interested in pooling ETH, she can participate in a pool on CoinList. She simply stakes ETH for six months and CoinList pools it with other participants and runs a node for them to earn rewards, split proportionally based on each participant's staked amount.
It will take approximately six months** of participation on the network to recover all of the escrowed ETH. The specific amount of time will depend on the amount staked to a node and the staking participation rate of the network as a whole.
ETH is unlocked a little every day. Once the ETH is unlocked, it can be recovered. Due to gas costs, many participants will only want to call for the return of their ETH occasionally or all at once after the escrow period is complete.
**Note that the escrow period starts at mainnet launch, not at WorkLock deployment, and all timelines are set by the protocol, not Bison Trails.
Bison Trails is excited to support NuCypher and make it incredibly easy for you to participate in the protocol.
Help strengthen the network and earn NU tokens in exchange for your active participation. If you have ETH you feel comfortable locking up for 6 months and would like to participate, send us a note.
Bison Trails is a blockchain infrastructure platform-as-a-service (PaaS) company based in New York City. We built a platform for anyone who wants to participate in 21 new chains effortlessly.
We also make it easy for anyone building Web 3.0 applications to connect to blockchain data from 33 protocols with Query & Transact (QT). Our goal is for the entire blockchain ecosystem to flourish by providing robust infrastructure for the pioneers of tomorrow.
In January, 2021, we announced Bison Trails joined Coinbase to accelerate our mission to provide easy-to-use blockchain infrastructure, now as a standalone product line. The Bison Trails platform will continue to support our customers. With Coinbase’s backing, we will enhance our infrastructure platform and make it even easier to participate in decentralized networks and build applications that connect to blockchain data.
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