NavCoin is an open-source project to which anyone can contribute. It is a community initiative that ran no pre-mine or initial coin offering. As a community we have ambitious goals and the NavCoin Core team does their very best to move NavCoin forward with the limited resources they have available. Finding a better way to fund NavCoin projects and further encourage the decentralisation of the development of NavCoin is one of the NavCoin Core team’s priorities.
The community have suggested a change in the consensus mechanism which would allow for community contributors to receive funding from the network for their efforts. The NavCoin Core team agree that implementing community led funding will best serve the interests of this open-source project and foster it’s decentralised nature.
After consideration and discussion within the community, the NavCoin Core team are proposing the following changes.
- Proof of Stake rewards will be reduced from 5% to 4% per annum.
- Each block staked will generate 0.25 NAV per block for the NavCoin Community Fund.
- Anyone and everyone on the network will be able to propose projects, budgets and initiate network votes to schedule funds.
- The NavCoin Community Fund will be protected by the consensus layer – proposals to schedule funds will never be accepted without the positive vote from a majority of NavCoin stakers.
- Scheduled funds can only be released by a 2nd network vote when NavCoin stakers achieve consensus on whether the proposal was completed successfully. No funds are received until work is agreed as complete.
- If the work is never completed, the scheduled funds are returned to the NavCoin Community Fund.
- No one (not even the NavCoin Core Team) owns or can directly access, manage or curate the NAV in the Community Fund or how it is distributed. The fund has no private key which can spend the NAV, the only way they can ever be spent is by the dual network consensus vote.
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. Therefore 1% of the proof of stake rewards approximately equals 250k NAV per year which is roughly 0.237 NAV per block with NavCoin’s 30 second block time. The NavCoin Core team suggest using a fixed amount of 0.25 NAV per block rather than a calculation based on 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 community and to protect the fund from extreme fluctuations.
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 the NavCoin Core team have released version 4.0.6 of the NavCoin Core 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 the wallet should be actively staking to cast votes, every minted block will represent 1 vote. Voting period will start at 00:00 on the 18th October 2017 (GMT) and be counted as a percentage per block period (~4 days).
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 considered approved when 8640 blocks signal a positive vote over a 11520 (~4 days) block period (75% acceptance).
The NavCoin Core team propose some changes to the NavCoin consensus protocol. In short:
- Creating a decentralized NavCoin Community fund
- Staking reward changes from 5% to 4%
- Fixed amount of 0.25 NAV Coin/block to NavCoin 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 decentralised development of NavCoin amongst the community.