Lum Network has raised $4 million in a private sale that primarily included notable participants from the Cosmos ecosystem like Tendermint CEO Peng Zhong, Cosmostation, SG-1, Stakefish and Sentinel. Other investors like Arcanum Capital, Klub and Swissborg also participated in the round.
Lum Network is using blockchain to provide an incentive system for users to provide high quality reviews of goods and services. Instead of rewarding a review’s sentiment (positive or negative), Lum Network uses tools to assess the review’s quality and use it as the basis for rewarding the user. In this way, businesses can get a more accurate view of customer satisfaction, and review readers get exposed to better content. The immutability of the Lum Network blockchain also helps establish trust, as users can be sure that reviews are not being tampered with.
Lum Network co-founder Sarah-Diane Eck commented on the $4 million private sale, saying the team believes blockchain technology is ready to be used in the mainstream:
“We think the time has come for more mainstream uses of blockchain that would impact the real world. Since we started in 2016, the space has matured tremendously. Now, we're ready to launch a large-scale use case that will directly impact consumers' lives by adding value to the content they produce.”
Initially based on Ethereum, Lum Network has since migrated over to the Cosmos SDK and Tendermint BFT consensus in order to achieve better scalability. The LUM token is the native asset of Lum Network, and is used by all the network’s participants. Companies and third-party services participating in the network use LUM to pay transaction fees and reward users for quality content.
The project has a strong partnership with Skeepers, a France-based SaaS company that’s using the Lum Network to store reviews. Skeepers is specialized in UGC (user generated content) and collects more than 30 million reviews on a yearly basis.
Lum Network is about to hit a major milestone, as their mainnet launch is scheduled for December 14, 2021 at 17:00 UTC. Following the launch, the LUM token will become available on Cosmos-based decentralized exchange Osmosis. A portion of LUM tokens has been allocated to the Cosmos community, and was airdropped to ATOM stakers and OSMO liquidity providers. These airdrops will become claimable once the Lum Network mainnet is live.