NuCypher, a blockchain network that brings data privacy to decentralized applications (dApps) built on Ethereum and other public blockchains, has raised $10.67 million in new funding ahead of its mainnet launch, reported Cointelegraph on October 8th.
The round is led by venture firm Polychain Capital, with participation from Y Combinator, Bitmain, Bitfury, Arrington XRP Capital, Notation Capital, and over 10 other firms.
NuCypher’s particular product is based on proxy re-encryption, which allows files to be encrypted to lots of people and for administrators to grant and revoke access based on certain conditions. The company dates back to 2015, but it began looking at tokens as a way to decentralize its infrastructure in 2017.
In order to further decentralize the network, NuCyhper announced a distribution method called a WorkLock. In short, new users can put ETH into a smart contract and they will receive NuCypher tokens. Their ETH will be burned, however, unless they use the NuCypher tokens to stake a node for a certain amount of time.
This should discourage people from claiming NuCypher tokens unless they intend to be users. Somewhere between 25o–400 million tokens will be designated for distribution through the WorkLock.
While participating requires technical skills, NuCypher has tried to facilitate it as much as possible. It has already released staking documentation. Many well-known staking operators such as Bison Trails, Grassfed Networks and Staked (among others) are already running NuCypher.