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Overview


Bitum logo What is Bitum?

Bitum is a blockchain-based cryptocurrency with a strong focus on community input, open governance, and sustainable funding for development. It utilizes a hybrid Proof-of-Work (PoW) and Proof-of-Stake (PoS) mining system to ensure that a small group cannot dominate the flow of transactions or make changes to Bitum without the input of the community. A unit of the currency is called a bitum (BITUM).


How Does it Work?

Stakeholders make and enforce the blockchain’s consensus rules, set a course for future development, and decide how the project’s treasury is used to fund it. Bitum’s blockchain is similar to Bitcoin’s, but with major aspects of governance baked into the protocol.

To align incentives, block rewards are split between PoW miners, stakeholders and the Bitum Treasury, which funds the project.

Subsidy Party
60% PoW Miners
30% PoS Voters
10% Bitum Treasury

Proof of Work miners play a similar role for Bitum as they do for Bitcoin, but with Bitum they only receive 60% of the block reward.

Proof of Stake voting is central to Bitum’s governance. Bitum holders can time-lock (or “stake”) BITUM to obtain voting tickets. Tickets are randomly called to vote on-chain; this involves both approving the work of PoW miners and voting Yes/No on any open rule change proposals. 30% of the block reward goes to the holders of the tickets that voted in that block.

The remaining 10% of the block reward goes into the Bitum Treasury. Holders of live tickets decide how that treasury is used through Politeia proposals and voting.

The Bitum Constitution sets out some guiding principles for the project; the constitution is subject to amendment through Politeia proposals.