With aspirations of creating a more efficient system for data and asset management, the New Economy Movement, abbreviated as NEM, was designed as a blockchain and cryptocurrency solution addressing pre-existing blockchain challenges. Unlike typical blockchain ventures, it strived to provide a cost-effective alternative without being just another blockchain or altcoin.

The blockchain and cryptocurrency initiative known as NEM aimed to tackle issues disrupting other blockchain platforms through innovative methods. However, by October 2024, despite some market activity involving the XEM token, the project itself had largely faded into obscurity. While traders might still find opportunities with XEM, NEM has slipped into the background, overshadowed by its intended successor, Symbol (XYM).

The views and analyses shared here are intended solely for informational purposes. For further details, refer to our resources. As of the article’s publication date, the author holds no cryptocurrency.

Harvesting: A Different Take

Through the Eigentrust++, NEM implemented a “reputation system” for network nodes, ensuring load distribution and the potential removal of inactive nodes for optimal network performance.

The unique aspect of NEM’s harvesting process was the absence of a necessity for continuous power usage. Mining devices or computers need not run continuously; instead, automatic harvesting took place within a user’s wallet, negating the need for specialized hardware.

Differing from mainstream methods, NEM’s harvesting allowed participants to connect their accounts to supernodes, leveraging the processing abilities of these nodes. This method didn’t require users to enhance their computational power but instead, improved chances of joint block creation through POI score sharing.

Upon transaction initiation on the NEM blockchain, the initial node to validate and broadcast it triggered a chain reaction, propagating the information and boosting the likelihood of block formation.

The Genesis and Evolution of NEM

In the year 2021, the NEM network underwent a transformation into Symbol (XYM), implementing a proof-of-stake plus (POS+) consensus method.

Initially managed by the NEM Foundation, a Singapore-based non-profit, NEM’s evolution from the NXT network was marked by a completely new codebase, enhancing efficiency and scalability.

The currency affiliated with NEM, recognized as XEM, experienced a surge in value from 2020 to 2021, although it wasn’t utilized for transactions like some other cryptocurrencies, leading to its subsequent depreciation.

NEM’s Proof-of-Importance

Setting itself apart, NEM incorporated proof-of-importance (POI), a system prioritizing user involvement. This meant that one’s contribution and engagement in XEM holdings directly influenced their importance within the network.

To earn the privilege of generating new blocks and gaining transaction fees, a user needed to keep 10,000 “vested” XEMs in their wallet.

While other networks like Bitcoin employ proof-of-stake models, where token holders serve as validators, NEM’s POI prevented disadvantages seen in both proof-of-work (POW) and proof-of-stake (POS) systems.

POW systems often lead to energy wastage and favor miners with top-tier processing capabilities, whereas POS systems give an edge to those with larger token holdings, inadvertently encouraging hoarding.

As of a notable date, October 12, 2024, NEM (XEM) held a market value of approximately $0.1788 and documented a trading volume of $4.21 million over a 24-hour period. Despite the project’s dormancy, XEM persists in digital currency exchanges, serving as a testament to its ongoing marketable potential.

In parallel to many POS systems, NEM’s POI mechanism vested 10% of users’ holdings daily, streamlining the path to achieving vested status. This mechanism is exemplified through Martin’s case, where his 20,000 XEMs progressively vested until exceeding the requisite 10,000 threshold within a week.

NEM’s POI also took into account the frequency and size of transactions made within the network, influencing users’ scores and enhancing their chances of receiving rewards. Measures were implemented to mitigate fraudulent transactions intending to inflate POI scores artificially.