Woodcoin

Overview

Woodcoin (LOG) is a cryptocurrency launched in 2014 that implements a unique logarithmic mining reward curve, designed to better mirror natural resource extraction and create a more sustainable mining model. The project aims to serve as a decentralized store of value and medium of exchange.

Purpose and Utility

The primary stated purpose of Woodcoin is to function as a peer-to-peer electronic cash system with an innovative approach to mining rewards that follows a logarithmic curve rather than Bitcoin's halving model. This design choice was made to create what the developers consider a more natural and sustainable distribution model.

Development and Adoption

The project maintains active development, with updates to its core software continuing through recent years. The project has a small but dedicated community of miners and users. While adoption remains limited compared to major cryptocurrencies, this does not impact its Sharia compliance status.

Token Distribution

Woodcoin had no pre-mine and no ICO, meaning all tokens have been created through mining since launch. This indicates a fair distribution model without privileged allocation to founders.

Technology Assessment

The cryptocurrency operates on its own blockchain using a Proof of Work consensus mechanism. The logarithmic reward curve is the key technological innovation, implemented through open-source code that can be verified by anyone.

Revenue Model

The project generates no direct revenue, as it operates as a decentralized cryptocurrency. Miners earn rewards through securing the network, which is compliant with Islamic principles as it involves actual work and risk.