What Constitutes A Decentralised Coin?
Decentralized coins are those that are autonomous and are not controlled by a single organisation or entity.
We often hear coins calling themselves ‘decentralised’. However, when you look at them properly, often times you find that the nodes and miners are controlled by them or their friends. What this really means is that they control the coins that are being released to the market, hence the prices are susceptible to manipulation.
There are also coins that are called Utility Tokens that are created for a specific idea or project which may not even need a token at all to function. For example, an Uber-like app for renting vehicles may not warrant an ICO of a token because they should just go for equity financing and fund raising. However many participants of these ICO are not aware that the coins that they purchase do not equal equity participation, hence even if the Coin owner’s company goes to a billion dollar in valuation, the coin holders may not have a share in that kind of valuation. What they hold could be useless coins which may not even have a demand in the market because there simply isn’t any utility in the token.
Hence we at Hilux are not believers of Utility Tokens. Utility tokens are centralised. They are controlled by a single entity or organisation. They may or may not be in demand. If the founders of the utility token decides to one day close the company, all the coin holders will be left with nothing.
That is why again, Hilux is a decentralised coin. It is not controlled by the founders and the distribution of nodes are owned by the public and community. Hilux is also structured in a way that the incentives for miners are 40% of the block reward while the Node owners get the remaining 60%. There also isn’t a developer fee attached to it, hence all the rewards go to those who have a stake in it and those who work for it (mine it). We believe this structure is fair.