Beginner’s Guide To The TUNE Cryptocurrency (TUN)

louisnelza (46)in #steemit • 7 years ago (edited)

TUNE - The Experimental Cryptocurrency

TUNE is a masternode cryptocurrency for incubating and investing in new cryptocurrencies. When developers have a new idea it is often difficult to finance the project. The most common option is to premine coins in an Initial Coin Offering (ICO) but this is often not successful. The coins are quickly dumped on exchanges which shakes confidence in the cryptocurrency and leads to fear, uncertainty and doubt (FUD) in the community. TUNE aims to change this completely. The TUNE way is a solution where developers can raise funds and incubate their ideas using TUNE cryptocurrency. New cryptocurrencies can be developed and marketed using the TUNE ecosystem. The TUNE cryptocurrency is listed on exchanges under the ticker name TUN.

Was There A TUNE Premine?

Yes, but the funds are locked. In keeping with their philosophy TUNE did not launch an ICO to raise funds. In that sense the TUNE cryptocurrency is the ICO for other cryptocurrencies. Less than 1% of the total supply of the coin are locked to secure the cryptocurrency. These cannot be sold and it also prevents dumping of the coin. This cryptocurrency is still very new and the genesis block was mined in January 2018.

What is TUN?

TUN uses a proof-of-work (PoW) algorithm and neoscrypt encryption. PoW is a clever way to protect the blockchain against attacks and spam abuse. The computer or miner accessing the blockchain has to contribute their processing power to solve algorithms that have been encrypted using the neoscrypt encryption. A great characteristic of TUN is that it has a very short block time of 90 seconds. This means that miners can work through about 960 blocks per day. For their efforts, miners are rewarded with rewards of 5 TUN per block and masternodes also receive 5 TUN per masternode. The coin has a very low supply of just over 3 million. At the current rate the coins should all be mined within a period of 4 years.

Will The Block Rewards Always Stay The Same?

No. The cryptocurrency has a halving interval built in which means that after a year, the rewards will reduce to 2.5 TUN per block. As with all cryptocurrencies the coin is deflationary by design and will increase in value. This is unlike fiat currency which are inflationary by design.

What Are The Benefits Of TUNE?

TUNE has a very good return on investment (ROI). By holding a masternode investors can easily increase their profits through a passive income. As mentioned the block time of 90 seconds is very short. This means that transactions on the TUNE blockchain are very fast. The network is smart contract ready and it can be scaled and extended outside of the TUNE network.

What Is A TUNE Masternode?

A TUNE masternode is a full node that is installed on a virtual private server (VPS). The server has some dedicated resources that ensure that a full copy of the TUN blockchain is kept and updated on the server. Masternodes require collateral to be kept on the node wallet. At present masternodes require 3000 TUN to be held in their wallets to be registered on the network. Usually, the TUN collateral required increases by 500 TUN every 10k blocks. It was decided to keep the price of a masternode steady at 3000 TUN. Masternode holders will start voting again when the blockchain reaches block 100k whether the masternode collateral should increase again. Masternode holders also earn an incentive to keep their nodes running called profit share.

What is Profit Sharing?

Profit sharing is a system where masternode holders receive 50% of all profits generated on the TUNE blockchain. It is kept in a public Bitcoin wallet. The profits are paid over to masternode holders on a monthly basis. The ethos is that funding operations at TUNE is done in a transparent way. All wallet addresses are disclosed including the profit share wallet. Users can track balances and transactions using the TUNE block explorer. To receive the profit share benefit, masternode holders need to complete a registration process. There is also an investment strategy to help the TUNE fund grow and to invest the BTC wallet funds in other cryptocurrencies. There were some teething problems with the software and the developers did not stick to their regular profit share payout causing some to doubt the sustainability of the project. However, the new TUNE fund has been established to ensure that these monthly payouts are done.

What is the Investment Strategy?

5 BTC of the 10 BTC fund will be invested and used for trading. The team has invested in three other masternodes of other established cryptocurrencies that perform well. There are MEDIC Coin, POLIS and NUMUS. Without investment trading they are projecting a 24% monthly and a 288% yearly ROI. The entire 10 BTC fund is also insured by an financial company protecting the community from trading risks.

Why Do You Need Collateral To Start A Masternode?

Collateral in masternode is an idea that was popularized by DASH. It creates motivation for masternodes to act in favor of the network. By having a financial stake in the blockchain, also referred to as having “skin in the game”, masternodes will act in their own best interests as well as benefiting the community.

What Is The TUNE Ecosystem?

The TUNE ecosystem refers to child cryptocurrencies that are financed by TUNE. In this way TUNE becomes a pivotal coin.

What Coin Concepts Are Planned For The TUNE Ecosystem?

Three other coins or cryptocurrencies are envisioned for the TUNE ecosystem. They will be funded through TUNE individually. Firstly a rapid coin, codenamed R. The aim of this coin is to bring transaction times down to 30 seconds. This cryptocurrency could then be used for payments in real life. Another idea is an experimental coin, codenamed E. The aim of this coin is to get a high ROI and to create new opportunities for investors. Lastly, mobility coin, codenamed M. This will be for mobile devices. It needs to be a lightweight coin that can be mined and transacted on any mobile device.

How Do You Buy TUN?

TUN is listed on four exchanges - Coinexchange, Southxchange, CryptoBridge and Stocks.exchange. All the exchanges trade in BTC/TUN pairs so you have to buy BTC first and then buy TUN with your BTC.

Which Wallets Are There To Store TUN?

At the moment there are only desktop wallets available. Platforms that are supported include Windows (32 / 64 bit) and Linux. The wallet source code is also available on GitHub.

What Does The Development Team Look Like?

The original developers are TuneCrypto and Silence. They have expanded the team by bringing in new talent from South Africa and Mauritius to promote and develop the TUNE ecosystem. Liaan Roodt and Douglas Bothma of CryptoSure Technology is the driving force behind promoting this cryptocurrency. They are joined by Jessi Fann who handles all social media channels and Ashton Dookhilal who heads up graphic design.

What Does The Roadmap Look Like?

In the spirit of total transparency, progress reports are provided every week on all social channels. The keeps the community informed and reduces the risk of FUD spreading. This keeps investors confident and attracts new interest to the TUNE ecosystem.

Verdict

TUNE is still relatively new but has showed great potential, hitting an all time high price of $56. Due to scalability issues that payouts of profit sharing stopped which created uncertainty in the community. This resulted in loss of support. With the establishment of a new TUNE fund the profit sharing goal is back on track.