What is Proof of Importance (PoI)?

Proof of Importance is an innovative consensus algorithm developed by the NEM blockchain protocol and is a variation of Proof of Stake. The system allows a wide pool of users to participate in the addition of new blocks in exchange for receiving tokenized rewards. The rewards are determined in proportion to a score that quantifies the user's contribution to the network. Additionally, PoI encourages healthy activity of the ecosystem by preventing users from hoarding the XEM asset.