Ever since the invention of Bitcoin by the Cryptocurrency master, Satoshi Nakamato, there has been an appreciable increase in the adoption of blockchain technology which is evident through various tokens and other altcoins that are made available.
Moreover, various projects are being powered via the use of blockchain technology. The gaming, banking, and virtually most industries are adopting blockchain technology to ease their day-to-day activities.
Despite the good the blockchain technology has offered it adopters, however, it also has the pitfalls associated with the operation executed within its ecosystem. We don’t have to be stressed too much before cases involving frauds could be seen on the blockchain and this is majorly due to low level of security. Illicit market activity and lack of applicable utility for non-technical or average users are also problems encountered on the blockchain.
In recent years, there has been various cases of lost funds, in Ether on the Ethereum blockchain. In the 7th month of 2017, a vulnerability in Parity led to the loss of about $30 million worth of Ethereum. However, there has been various strategies to mitigate or halt this misfortune, yet cases like this ensue.
As technology is improving, individuals are getting used to the financial system. An average user is able to operate with greater efficiency although, there are some local currency whose objective is to keep their circulation local. However, non-technical communities are unable to generate their own currencies, even though they can, the currencies cannot be valued against each other.
Native will create solutions to the above problems.
Native is an Ethereum-based platform which gives the power of generating a community-based token to the member of such community, while at the same time managing their resources via collective decision-making tools.
As the name implies, provides a medium through which communities' operations can easily be executed through the use of their own unique currencies which can be generated and managed by such communities through via a range of decision-making tools made available.
However, group of people with common interest makes up a community, therefore, making Communities essential components of Native. Any group of people that share a common interest can create a community on native.
Because communities are fully authorized in governing their niche, their intrinsic importance can be appreciated in a global economy and they can easily leverage on the power of collective decision-making thereby enabling them to utilize their full potential which contribute significantly to such community and the universe at large.
CORE FEATURES OF NATIVE PLATFORM
∆ Unique Community Token
Communities launched on Native usually have their own token which is completely unique. The token however, signifies membership, create a community resource pool, and also serves as a means of exchange within a particular community.
In order to contribute to a particular community, members of such community are given the ability to vote on polls. This makes decision-making or governance of such community democratic and not otherwise.
Since the governance of any Native community is democratic, members can make their decisions on any projects being pursued by the community. This gives everyone a say as regards the management of their resource pool.
Member who chooses to get any important task completed is incentivized the communities tokens.
USER TYPES ON NATIVE
These are trusted members of the community who serve the function of an administrator and are very knowledgeable about an existing community’s initial vision. They serve the function of filter by ensuring that only contents which are relevant and of potential benefits are made visible for Members to vote on. Any completed works by community members are also approved or disapproved by Curators.
Individuals could show interest to be part of any community that share the same goals with them. Members of a community have their say regarding decision making ( e.g changing a curator) and this is done via their votes. However, members have the right to be part of more than one community.
NATIVE ECOSYSTEM ARCHITECTURE
The Native Ecosystem is basically made up of the Native Token and Community Currencies, both having similar functions.
∆ General Token Design
Tokens within the Native ecosystem are generated as Bancor Smart Tokens implying that they have some reserves in base currency. However, a combination of this reserve with an autonomous market-making algorithm enables the conversion of any two tokens within
Native ecosystem ensuring transparency and fairness in market value. For this to be done, a second party is NOT required.
The Smart Tokens uses a continuous token model, meaning they are minted/created and destroyed as users interact with the Smart Contract.
Benefits of A Continuous Model
- No generation of more tokens unless they are needed
- Instant liquidity for Tokens at the calculated price
- Serves as a good pointer of the market size and activity
Funds introduced into a Token Contract are split and can be sent down three paths namely:
* Community Fund
* Smart Token Converter
* Connector Balance
Every community token/currency has its own unique split, however, recommendations are provided upon creation.
“The token/currency being converted to is generated and sent to the converter’s wallet.”
During redemption, there is no deduction from the community fund, therefore, when Tokens are returned into their Smart Token Contract, base currency in reserve is exchanged for it.
Redemption leads to a decrease in Connector Balance, which further lowers the liquidity for that token. Base Currency is then sent to the Converter’s wallet.
∆ Connector/Reserve and Token Pricing
Three variables are essential in calculating token price:
* Connector/Reserve Balance
* Number of tokens in circulation/Outstanding supply
* Connector Weight
See formula below:
Connector Weights, CW, range from 0-100% and it is inversely proportional to volatility, that is; higher weight signifies lower volatility and vice versa. A modification of the Connector Weights can be made by Communities to:
- “Accommodate large volatility swings in the general markets;
Support expansion or stabilize value; Mitigate unforeseeable challenges”
∆ Native Token
Native Token(NTV) represents the Base Currency for all other Currencies on the native platform. It provides Membership to the Native Community and it holds it reserves in Bancor Network Token, BNT.
Native Token conversions will initially utilize the following split:
Community Fund - 50%
Smart Token Converter - 10%
Connector Balance - 40%
NTV initially will maintain a 10% Connector Weight (equal to Smart Token Converter) to ensure a significant pool of liquidity should users want to move back into BNT or ETH.
∆ Community Currencies
Community Currencies represent the local currency for each native community . However, contrary to the Native token, Community currencies' reserves are held in Native Token.
The initial split is as follow:
Community Fund - 80%
Smart Token Converter - 10%
Connector Balance - 10%
"Once the first round of Communities are functional, Native will assess Community performance. Over time this will allow for split recommendations based on Community size and type."
∆ Valuations and Implications
A set of guidelines have been laid down, to assist in evaluation a fair market value of communities:
- Community Valuations
In order to assist in the evaluation of a fair market value for communities, Native has laid down some guidelines:
“Reserve Balance/Connector Weight-Value of Base Currency held in ReserveCurator - Is the Curator trustworthy? Are they an influencer?Values Alignment - How much do Members value the Community and its mission?Number of Members - How many Members does the Community have?Member Activity Levels - How active are the members?Community Fund Balance - How much capital is in the Community Fund? Has it generally been spent wisely?Community Impact - What impact is the Community having on its Members and the World? If lots of impact is felt, people will be more inclined to support the Community.Value of Membership Benefits - What are the additional benefits of being a Member? Are they valuable?Current and Future Potential Revenue - Does the Community earn money? If so, how much? Is it redistributed fairly into the community?”
Source:Native Whitepaper, pg 9-10.
∆ Ecosystem Structure Implications
The Native ecosystem is designed in such a way that any positive changes in the platform impact each community, therefore, as the Native ecosystem grows, each community also grows and reverse can never be the case.
When the platform is fully functional, Native intends to migrate to Aragon; Aragon allows anyone to create and manage a decentralized organization, making it compatible with Native. Anything that has to do with finance leverages on decentralized solutions, while others are centralised. The goal is to provide maximum benefit, while ensuring that Native is not a single point of failure.
Users are only able to access their Communities via Web3 wallets which have a dual function; as a means of identification and also transacting within the Native platform.
The dashboard exhibits all activities carried out within the community, some of which include membership history, proposals to be voted on and tasks that are available for execution.
∆ Community Currency
Each Community on the Native platform possesses its own Currency which has various functions. Moreover, members of a community can independently add some other functions.
- Medium of Exchange
Exchange serves an important function for all currency. A Community-owned currency enables transactions within that Communit, helping to protect the Community’s value and at the same time encouraging local spending.
Becoming a member of a Community requires the conversion of Native Tokens into a Community-owned Currency whose quantity is usually determined by the Curator upon creating the Community. Upon becoming a member of any community, participation rights are given to such person.
- Alignment of Interests
An alignment of interests for all communities is created by Native Token. However, in case of addition to an already existing alignment, a small portion of Communities' currencies can be allocated to other Communities as a form of token swap between two groups, or a purchase paid in the community currency to an external party.
∆ Community Fund
Each community on the Native platform has its own unique currency that grows over time. The growth is dependent on:
● New Members joining
● High levels of Member participation
● Revenues recycling into the fund
Community Funds are essential components in catalyzing the growth and achieving the goals of a community. These funds can be set aside for Projects, Tasks, and general operations. An approval of a Project or Task, means a direct allocation of NTV to the designated wallet.
∆ Collective Decision Making Tools
BENEFITS OF THE NATIVE PLATFORM
● It serves as a connection among users with common interest ensuring quick dissemination of information
● It ensures a quick growth of any community as the platform itself grows
● It gives members of any community full control of their community
● It enables no members are left out as they can easily go along with new developments with time
● Since information such as history of the community would be made available, it ensures new users know what the community is up to
● Members are incentivized for any tasks carried out
● It aids the connection of various people with common interests globally, thereby making them relate with one another easily
The core benefits of creating a community on Native are:
A platform like Native ensures that reaching a consensus among group of people is made easy. This is done via a polling.
Use Case 1
Jon is a big fan of the movie *Games of Thrones, GOT.
However, Jon is in search of a community that shows and share a great passion on GOT with him. He discovers a GOT community on the Native platform! Then he took the next step of actualizing his need by purchasing tokens which automatically makes him a member.
Now, Jon can take part in the decision-making process of the community. He could also carry out various tasks and be rewarded in the community's currency.
Use Case 2
Andrew wants to create a blockchain-based company but knows little or nothing about tech which makes him less interested.
As time drives by, Andrew hears about Native and decides to try it out. Native enables him to create a community and put down his goals. As new members get interested and join the community, it becomes populated and it becomes a boom. However, Andrew only cannot make amendments to what is going on, rather others have to be carried along.
NATIVE TOKEN MODEL
MEET THE TEAM
The native platform will bring more adopters into the blockchain system since users don’t really need to have much technical knowledge before they can carry out operations.
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