CreditBit’s Expands Upon Proof of Trust/Pawn

Jayanand Sagar | February 16, 2017 | 6:39 am
bitcoin, creditbit, press release

CreditBit’s Expands Upon Proof of Trust/Pawn

Jayanand Sagar | February 16, 2017 | 6:39 am

In the latest update on Bitcoin Talk, Creditbit has discussed Proof of Trust/Pawn, which is one of the core attributes of future CreditBit token – one of the three minting processes for the token.

There will be two modes of tokens under the Proof of Trust/Pawn locking mechanism.

Each wallet or each public address will have two balances. The two balances both will belong to this same public address. The first balance would be of transferable tokens, similar to other currencies.

The second balance will be of “locked” tokens that are not transferable. Balance will be the sum of several batches of tokens, each locked for a different period of time. After the expiry of a locking period, each batch of previously locked tokens is moved to first, transferable balance.

The ‘Lock’ on the batch of tokens is an item by itself. Lock can only be created trustworthy entities, that in practice represents distribution mechanisms or CreditBit DAO organization and with a prior consent of tokens owner.

It depends on the owner to lock those tokens for a predefined period of time in case they enter a distribution or voting mechanism with predefined batch of tokens.

In other words: if an owner of tokens wants new tokens or wants to vote, he/she has to lock a certain amount of his tokens and thus show his trust in the Community. Locked tokens are not lost, only their transferability is restricted for a certain time period.

The idea behind locking the tokens for months or even for a week is about showing respect and trust in the community.

Bounties for developers and promoters will be paid out in locked tokens.
Same principle will be in effect for voting in CreditBit DAO. In order to participate in DAO voting, owners will have to lock certain amount of tokens.

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