Ndau: The Next Evolution in Stablecoins

Jacob Stelter
Nov 5 · 2 min read

Ndau is a buoyant cryptocurrency that has a monetary policy that stabilizes the currency when supply outstrips demand and when demand outstrips supply. There are incentives inside the Ndau wallet that encourages this buoyancy. One is EAI which means Ecosystem alignment incentive. An Ecosystem alignment incentive (EAI) is a way to earn money for locking up NDAU for a certain time period which encourages users not to leave Ndau for another cryptocurrency. Also, there is a stabilization incentive burn (SIB). A stabilization incentive burn is to keep market participants from dumping Ndau during down periods. Anytime a market participant sells or moves Ndau off the Ndau blockchain there is a fee for doing so and that Ndau fee is either burned or taken out of supply. I wanted to take some time to explore an idea for a new feature that will help Ndau reach the hoi polloi.

There has been a move in the cryptocurrency community and I daresay climate change advocates that cryptocurrency mining is an entirely useless endeavor that wreaks havoc on our planet and wastes enormous amounts of energy. However, they miss the point of cryptocurrency which is peer to peer electronic cash that can’t be seized or stopped by government forces. One of the main problems with cryptocurrency today is the lack of access to the actual cryptocurrency like Ndau, Bitcoin, Dai, Ethereum, Bitcoin Cash, Litecoin, et cetera. For example, let’s say I want to buy Ndau and put it on my cellphone I would have to do an ACH transfer from my bank account to Coinbase, then wait 17 days for Coinbase to clear it, then trade it into Bitcoin, then send it to Bitmart to buy Ndau. What most people underestimate about mining (pow) is it’s one of the easiest ways to access cryptocurrency. It is an exchange of electricity (an abundant resource for people) for cryptocurrency (scarce resource).

By changing the monetary policy to add a new feature of cpu mining one dramatically lowers the access barrier to obtain Ndau and therefore will have a beneficial impact for the Ndau community. Monero is currently hard forking to an algorithm called Random X that is only cpu mineable and makes gpu’s (graphics processing units), fpga’s (field programmable gate array), and Asics undesirable.

Ndau is a one of kind cryptocurrency that is a buoyant coin that rises as demand rises without going to high or too low. Ndau has made a broad leap to be more accessible to the world by being listed on a decentralized exchange (bisq). But, the easiest way to get cryptocurrency into the hands of the hoi polloi is by exchanging electricity for cryptocurrency. The same people that know how to install Bisq on their computers are also capable of setting up a cpu miner too.

Ndau is the next evolution of a stablecoin a buoyant coin. However, will Ndau take the next step and reinvent cryptocurrency mining to allow the hoi polloi to obtain Ndau without numerous obstacles.

The article is based on my own objective analysis of Ndau and was subsequently submitted to its nlighten program.

http://bit.ly/ndau-nlighten

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