The NuCypher WorkLock & Staking NU
By: Clayton Menzel
Tags: Privacy Coin, Ethereum, Worklock, Proof Of Stake, Nucypher

The NuCypher WorkLock deposit period has begun. If you deposit ETH into the WorkLock, you can get your ETH back and earn a sizeable portion of NuCypher tokens. If you intend to participate with a sizeable deposit, contact us. Figment is standing by to assist you with this process.

NuCypher Overview

NuCypher is building cryptographic infrastructure for privacy preserving protocols and applications. NuCypher will use Proxy Re-Encryption (PRE) to allow users to share and store private data on public networks securely. The network will enable three primary things:

Secrets Management — Ability to store encrypted secrets in any storage backend, while allowing data owners to conditionally grant and revoke access to said secrets.

Dynamic Access Control — Grant or revoke access to data on demand or automatically under customizable, pre-specified conditions (eg. time-based, behavior-based).

Secure Computation — Perform operations on encrypted data while preserving the confidentiality of the inputs and results.

How will the network run? NuCypher Worker nodes, aka “Ursula,” will be active network participants that carry out re-encryption work orders to perform these encryption services. A Worker needs a Staker’s bond to be selected to do this work. The bigger the bond, the more work that the Worker will be selected to do.

Getting NuCypher (NU) Tokens

In order to stake and earn rewards on the NuCypher network, you’ll need NU tokens. If you weren’t an investor in the earlier rounds of funding, you can still get NuCypher tokens via the WorkLock. If you do things right, you will get NU tokens AND have your ETH refunded. What is the NyCypher WorkLock?

The WorkLock is the opportunity to receive a portion of the 225M NU token distribution (22.5% of the supply).

Deposit at least 5 ETH into the WorkLock contract between Sep 1 and Sep 28 Claim your 15,000+ “stake-locked” NU tokens Use your “stake-locked” NU tokens to run a Worker node when the network launches in October

You’ll need to run your Worker node for up to six months in order to fully recover your ETH. Effectively you will receive NU tokens and you will be refunded your initial ETH deposit. Everyone that deposits at least 5 ETH will receive at least 15,000 NU. If you deposit more, the number of additional NU tokens will be relative to the amount of total ETH deposited in the WorkLock contract–here are some scenarios.

The NyCypher WorkLock

NuCypher’s WorkLock began on September 1, 2020 at 00:00 UTC. The deposit period will remain open for four weeks, ending on September 28, 2020 at 23:59 UTC. You can cancel your deposit anytime during the contribution period and also for two additional days (aka “cancellation window”), which ends on September 30 23:59 UTC.

After this point, you will be able to claim your stake-locked NU tokens. If you do not provide the required Worker node services, your ETH will remain escrowed in the WorkLock smart contract.

Even though the WorkLock contract was audited by Trail of Bits, there is still risk involved in participating in which your funds could be irretrievably lost.

Two primary ways to participate in the WorkLock

If you intend to deposit a large number of ETH in the WorkLock, the NuCypher team has its released command line interface, and Figment is standing by to assist you with this process. This is the most self-sovereign way to participate, with no restrictions or maximum contribution amount. If you intend to participate with a sizeable deposit, contact us.

The benefit of working with Figment is access to Figment Prime, a white-glove service for all of your staking needs–a unique set of on and off-chain services for large token holders in PoS networks. Read more about Figment Prime here.

If you intend to deposit a smaller number of ETH into the WorkLock, Coinlist’s platform enables a user-friendly interface with no minimum contribution. However, qualification is dependent upon proof of residence and identification documents to comply with KYC laws.

Staking NU Tokens

NU will be an ERC-20 compatible “work token.” That means when you stake NU, you (or your delegate) have the right to perform work for the network and to earn rewards. In NuCypher’s case, the work is threshold cryptography services, which enable use-cases like access control and secrets management. If you delegate to Figment, we will do this work on your behalf.

As a NU staker, you will be able to earn fees paid into the network by users (in ETH), as well as a new-issuance (aka inflation) subsidy (in NU tokens). You will also be able to participate in the NuCypher DAO, which will govern the NuCypher network. More information about NyCypher economics can be found here.

If you expect to have a sizeable quantity of NU tokens and are looking for a staking partner, contact us to learn more about how Figment can connect you with reputable custodians and provide secure and reliable staking services so that you can maximize your earnings while minimizing your risks.