Nav Coin is maintained by a relatively small, self funded team. We are a community initiative that ran no pre-mine or initial coin offering. We have ambitious goals and we do our very best to move this project forward with the limited resources we have available. Finding a better way to fund Nav Coin and accelerate progress on our major projects is a top priority for our team.
The community have suggested that we use a small part of the staking reward to supplement the capital we already personally inject into the projects. An idea which we think has merit and could really help Nav to speed up its development and marketing projects since it enables us to hire more help, offer more bounties and create incentives for more people to become actively involved in the project.
Raising external funding has been discussed and explored, but we strongly believe that implementing an autonomous self-maintained system will serve the interests of the project far better than relying on financial support from outside of the network which could compromise the independent spirit of Nav Coin.
After consideration within the team, we are proposing the following changes.
- Proof of Stake rewards will be reduced from 5% to 4% per annum.
- Each block staked will also generate 0.25 NAV per block for the Nav Coin Community Fund.
- Both the Nav Coin Team and the Community will be able to propose projects, budgets and initiate network votes to schedule funds.
- The Nav Coin Community Fund will be protected by the consensus layer – proposals will never be accepted without the positive vote from a majority of stakers.
- Funds can only be released in arrears by a 2nd network vote when stakers are able to achieve consensus on whether the proposal was completed successfully.
Currently approximately 40% of the 62M NAV in the network are used for staking. This means the network generates approximately 1.24M NAV per year. The 1% reduction in proof of stake rewards approximately equals 250k NAV per year which equals 0.237 NAV per block with our 30 second block time. We suggest using a fixed amount of 0.25 NAV per block rather than a calculation based 1% of the amount staked to protect the network against attackers who could aim to remove coins from staking to constrain the financial capabilities of the project and to protect the budget from extreme fluctuations. This way we would assure budgets remain reliable and stable so it’d be easier to schedule the amounts for future projects.
We believe establishing a community fund will be extremely positive for the project and can lead to extreme revaluation, being a counterpart to the reduction of the staking reward.
Because we are a community project, we take the democratic process especially seriously. We would never attempt to make changes to the consensus mechanism without due process. The first step in this process is to initiate a network vote to see the community’s interest in reducing the stake reward and implementing a Community Fund.
Since network votes are cast when a user stakes a block, a network vote on this issue gives us the capability to get consensus from those who will be directly affected by a change in the staking rewards.
This proposal is a work in progress and we would love to hear your feedback. If you want to make a suggestion, comment or contribution please join us on reddit.
In order to facilitate the voting process we have released version 4.0.6 of our wallet. Users using the graphical interface will be shown with a dialog once the voting period starts allowing them to choose their vote. Users of the headless version of the wallet may add the following line
votefunding=n (being n=1 for YES, n=0 for NO)
to the navcoin.conf file and restart the daemon to start voting. In both cases wallet should be actively staking, every minted block will represent 1 vote. Voting period will start at 00:00 on the 18th October 2017 (GMT), finishing 4 weeks later at 00:00 on the 15th November.
NavPi users will need to log into their device and update the Nav Coin wallet to cast their vote. More detailed instructions for NavPi users will be posted in the coming days.
This proposal would be approved when 8640 blocks signal a positive vote over a 11520 (~4 days) block period (75% acceptance).
Nav Coin Team will be committed to actively work on the fast development and implementation of this proposal on the network if approved.
We propose some changes in our consensus protocol. In short:
- We’re creating a decentralized NAV Coin Community fund
- Staking reward changes from 5% to 4%
- Fixed amount of 0.25 NAV Coin/block to NAV Coin Community fund
- Anyone can make a funding proposal
- Payout’s of NAV happen when everyone votes that the work is completed
- The aim of this is to fund the development & ongoing success of Nav