Crowdfunding in the cryptocurrency space remains a problematic venture. Numerous business models have come and gone with most of them becoming obsolete. The Staked Coin Output – or SCO – method may have some merit to it. It is an alternative to token offerings. More importantly, the funds are not sent directly to a team of developers either. 

Staked Coin Output Explained

The news regarding Staked Coin Output, or SCO, took a lot of people by surprise. It is a new way of crowdfunding explored by a blockchain project. This first project is called “Aleph”, a cross-blockchain layer two network. As part of the SCO model, there is a brand new reward model. Community members stake tokens to receive tokens from other projects.

In this particular case, users need to stake NULS coins. Any project utilizing the SCO model on this chain will be of great interest to stakers. They will receive a number of tokens based on their NULS stake. It is a unique way of dealing with crowdfunding and token distribution. Its chance of success is…

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Source: https://themerkle.com/can-staked-coin-output-replace-icos-ieos-and-stos/