What is an Initial Node Offering
Before we explain what an initial node offering (INO) is, we would like, first of all, to reiterate that a real working decentralized system has no ownership because it belongs to the people. Companies which have a decentralized system will give the system over to the public, so the in-house system creators are not the only ones taking control of the system’s development. As they enlist public support to finance their decentralized projects, they also involve the public members who have supported the funding of their projects to also contribute to the development process.
Under this rationale, the INO allows people who have purchased a node in the system to also contribute to the network development process by running the network, creating value and strengthening the system, while allowing developers to monetize from their activities in a peer-to-peer (P2P) system. In a sense, the INO process helps stabilize the whole system. Thanks to the INO mechanism, we can set ourselves apart from the centralized system in which the master node or the central server has people running their nodes for them but give nothing in return to these node operators. It is only ethical that the node operators be compensated for the processing power and space which they have allocated to run the nodes in a P2P system.
What is the key difference between the ICO and the INO, and why the INO is a more ethical alternative to the ICO?
In the ICO, developers usually print millions of coins, inflate their value organically, sell them at a cheap price to make money and could just withdraw from their ownership of the assets, costing investors a lot of money while not involving them at all in the network development process. Meanwhile, the INO allows people who have purchased the nodes to have a look at the latest state of the network development, while contributing actively to the development through the activities already listed above