NEM
Crypto Overview
Overview and Intended Utility
NEM (New Economy Movement) was launched in 2015 as a peer-to-peer cryptocurrency and blockchain platform designed to provide a more efficient way to manage assets and data. The platform implements a Proof-of-Importance (POI) consensus mechanism, which considers not only the stake but also the transaction behavior and network support of nodes.
Platform Features and Actual Usage
NEM's primary features include: multi-signature accounts, encrypted messaging, and a reputation system. The platform supports the creation of assets, namespaces, and mosaics (similar to tokens) which can represent any form of transferable asset. The actual usage of XEM primarily revolves around transfer of value and as a utility token for paying transaction fees on the NEM network.
Development and Adoption
Recent development activity has significantly decreased since the launch of Symbol (XYM), NEM's next-generation blockchain. Many original use cases and partnerships have shifted to Symbol, leaving XEM with reduced utility. The NEM Foundation has faced challenges, including a major restructuring in 2019 due to financial difficulties.
Token Distribution and Governance
XEM had a fair launch with no ICO or pre-mine. All tokens were distributed through a process of delegation and harvesting. While this suggests a fair initial distribution, the current token distribution shows significant concentration among large holders. The development team's funding comes from a designated portion of harvesting rewards.
Revenue Model and Operations
The platform generates revenue through transaction fees paid in XEM, which are distributed to harvesters (validators). This model aligns with Islamic finance principles as it represents payment for actual services rendered. The platform does not involve interest-bearing mechanisms or explicit lending features.
Crypto Impact
To assign a comfort level investing in NEM from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to NEM.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.