The Nav Coin Community Fund has officially been approved!
In fact we’ve had an overwhelming amount of positive votes since the majority of the network updated to the latest wallet version with the vote period completing at around 81% yes (above and beyond the 75% threshold).
Nav is a community project and we believe that a community led system far better serves the interests of the project than private investment. It allows the project to retain autonomy over itself and empower members of the community to take charge of Nav Coin’s direction and help it grow.
The raised funds are collected into a smart contract, and unlike other community funds they can only be released by two rounds of network voting. There is no single point of failure. No single entity owns the coins that are set aside, and only the community can choose which proposals are funded and whether the funds are released.
The community fund will be extremely positive for the project and community and we are thrilled to be carving out this new milestone in the Nav story.
What This Means
- 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 (that’s roughly 260-300,000 NAV per year into the fund depending on the actual average blocktime)
- Anyone 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 large majority of stakers allowing the community to decide what is valuable for the project’s future.
- Unlike other funds which immediately release the coins when a proposal is accepted, our funds are locked when the proposal is accepted but are only be released in arrears by a second network vote when stakers agree the proposal was completed successfully.
We are confident this double voting method will ensure that the proposals are completed to a high standard and it will protect funds being taken by anyone who doesn’t intend to complete their proposal. Proposals which fail to be completed by the submitter will have the locked funds automatically returned to the pool for future use.
Although this double voting method is a somewhat slower process than existing community funds or the ICO model it offers a level of accountability, transparency and protection not yet yet seen in either.
About 40% of the total NAV in the network (62mil) is currently used for staking. With a 5% staking reward, the network generates approximately 1.24M NAV per year. The 1% reduction in proof of stake rewards approximately equals the projected 260k NAV per year. This equates to about $1M USD per year (at the current price) to spend on community projects, the core teams development roadmap and marketing initiatives – which will be a huge boost to the project.
Now that the vote has passed we will begin to build the voting interface and thoroughly test the mechanics of the fund. When the community fund is ready for the main net, it will be deployed into a new wallet version in a deactivated state. Once a large majority of nodes are running the new version, the community fund will automatically activate on the main net.
The beta of the community fund has already been deployed to the NavCoin testnet in version 4.1.0. The testnet stake rewards are reduced to 4% and there is 0.25 NAV per block generated by the staker and sent to the Community Fund Smart Contract. We will aim to keep the community updated with how the testing progress, and gladly welcome any suggestions/ideas/feedback that you may have.
Our goal is to make something that is easy to use – from being able to review the projects, to voting for them in only a few clicks. And having all of this integrated into your Nav Coin core wallet or NavPi unit.
You can help us to test the proposal, voting and redemption smart contract features before they are deployed on the mainnet. We have created a new genesis block for the testnet, so if you’ve been using it previously, please re-sync once you’ve downloaded the 4.1.0 wallet.
Creating and voting on proposals on the testnet is done from the command line only so far. We will release some instructions in the coming days on how to get involved and create, view and vote on proposals to help us with the test schedule.
And Last But Not Least
Thank you! The continued support we receive from our community is overwhelming and we are humbled to have such a dedicated community behind the Core Team and the Nav Coin project as a whole. We look forward to a new year with a deeper collaboration with the community, and exploring new capabilities within this exciting industry together.