• NuCypher enables public networks and dApps to access a data encryption and protection layer without having to rely on a central service provider. The “decentralized Key Management System” (KMS) allows users to securely store and manipulate private, encrypted data.

  • NU is an ERC-20 utility token of NuCypher and is used in the following functions:

    • Network incentives: Network participants are incentivized to perform key management services and access delegation / revocation operations on the network.

    • Staking: Stake NU tokens to run a NuCypher worker node and earn inflation rewards (NU) and policy fees (ETH). Note that staked NU tokens can be slashed if the corresponding worker misbehaves.

    • Governance: Participation in the NuCypher DAO, powered by Aragon.

  • The protocol consists of the following major components:

    • Staker nodes: NU tokens can be locked into the “Staking Escrow “ contract for a defined duration to generate two income streams: inflation rewards (NU) and policy fees (ETH). To ensure the network's integrity and service quality, staked NU can be slashed if the corresponding worker misbehaves.

    • Worker nodes (Ursala): Worker nodes carry out threshold cryptography operations and are performing work on behalf of a Staker. Workers must remain online to provide uninterrupted services on-demand.

    • Umbral proxy re-encryption (PRE): Proxy re-encryption (PRE) is a type of public-key encryption (PKE) that allows a proxy entity to transform or re-encrypt data from one public key to another, without having access to the underlying plaintext or private keys. This enables private data sharing across public blockchains and decentralized networks.

  • As at June 4th 2021, the maximum token supply of NU is 3,885,390,082 and the current circulating supply is 648,750,000 (~16.7% of max token supply).