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Peercoin is a peer-to-peer cryptocurrency that pioneered the proof-of-stake consensus mechanism as an energy-efficient alternative to proof-of-work, allowing users to validate transactions and earn rewards by holding coins rather than through intensive computational mining. It combines proof-of-stake for regular transactions with proof-of-work for initial security, and features a unique coin destruction mechanism to control inflation. Peercoin was designed to be environmentally sustainable while maintaining decentralization and security, making it one of the earliest cryptocurrencies to prioritize energy efficiency.