Share this article
Prospective Node Operators Stake $125M in ETH to Participate in NuCypher Encryption Network
Encryption startup NuCypher has finished distributing its network’s native token, NU, to over 2,000 prospective node operators.
Updated Sep 14, 2021, 10:02 a.m. Published Sep 30, 2020, 10:00 p.m.
Make us preferred on Google
Encryption startup NuCypher has finished distributing its network’s native token, NU, to over 2,000 prospective node operators who staked more than $125 million worth of ether during the month of September. NuCypher's system will hit Ethereum's mainnet on Oct. 15.
STORY CONTINUES BELOW
Primarily marketed as a solution for developers building decentralized applications (dapps), NuCypher helps firms encrypt data before they upload it to decentralized storage networks, while also retaining control over who can read the data once its uploaded (using an advanced form of flexible cryptography called proxy re-encryption).
On the other side, participants who run the network’s nodes earn fees in return for performing cryptographic functions and maintaining the network. To participate, nodes need to stake NuCypher's token, NU. The company needed a way to distribute NU to entities it might reasonably expect to participate once it goes live, and the solution it came up with was called “WorkLock.”
Under NuCypher’s WorkLock token distribution program, participants looking to run nodes were required to lock in a minimum of 5 ether (worth roughly $2,000 depending on when the ETH was committed). It also requires the staked ETH stay locked for a minimum of six months, starting the day the mainnet launches. The onerous collateral requirement levied on aspirant node operators was meant to dissuade users from claiming NU tokens and not participating in the network.
While participants can choose to stay or leave with their escrowed ETH after the six months pass, if they attempt to withdraw earlier or act maliciously, they would have to forfeit the staked ETH.
Read more: Polychain, Bitmain Back $10.7 Million SAFT for Encryption Startup NuCypher
“What it allows you to do is stake or escrow ETH into this WorkLock smart contract. You lock it up for six months from mainnet launch and that grants you this new stake that you can use to operate a new NuCypher node,” co-founder MacLane Wilkison said in an interview.
Last October, NuCypher announced the completion of a $10.7 million token sale from investors such as Polychain Capital, Bitmain, CoinFund, Arrington XRP Capital, Notation Capital and others.
Wilkinson founded the company alongside Michael Egorov, who also founded the popular automated market maker for stablecoins Curve.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Solana’s new phase is ‘much more about finance,’ says Backpack CEO Armani Ferrante
The Solana ecosystem has spent the past year doubling down on a financial infrastructure, Backpack CEO Armani Ferrante told CoinDesk.
What to know:
- Solana’s latest phase looks a lot less flashy than its memecoin-fueled highs, and that may be the goal.
- Armani Ferrante, CEO of crypto exchange Backpack, told CoinDesk in an interview the Solana ecosystem has spent the past year doubling down on a more sober focus: financial infrastructure. A
- fter years of experimentation as the wider crypto industry focused on NFTs, games and social tokens, attention is now shifting back toward decentralized finance, trading and payments.
Top Stories
