Lum Network, which provides a decentralized review system to help consumers make the right, informed choice for their products, has just attracted $4 million in a Private Sale round led by multiple key crypto and technology investors.
In the funding round have taken part Cosmos ecosystem participants such as Peng Zhong, CEO of Tendermint, as well as other contributors to Osmosis, Cosmos and Tendermint like Cosmostation, SG-1, Stakefish and Sentinel. There were also other participants, including Arcanum Capital, Klub and Ki Foundation, SwissBorg, plus successful entrepreneurs such as Owen Simonin, CEO of Just Mining and Djamel Agaoua, CEO of major instant messaging platform Viber.
Lum is building in association with Skeepers an on-chain review system that would enable businesses to provide trusted reviews by timestamping them and immutably storing them on the Lum Network blockchain, which is based on the Cosmos SDK and Tendermint consensus model.
We should take into account that reviews are one of the most valuable decision-making factors for consumers, as more than 95% of users read them before they decide to buy a particular product. As a result, reviews have become some of the most gamed aspects of retail commerce, with companies nearly always incentivizing reviews associated with good ratings through a spectrum of clean and not-so-clean measures.
Lum rewards reviewer authors in LUM based on the quality of their content. Through a unique incentive model where the quality of the reviews, onstea the review sentiment itself, are monetarily incentivized,
“We think the time has come for more mainstream uses of blockchain that would impact the real world,” said Sarah-Diane Eck, co-founder of Lum Network. “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. We are very proud to build this in the Cosmos ecosystem, which I consider one of the most promising blockchain ecosystems.”