NAV Essentials #01: Generate a Passive Income with Navcoin
The past twelve months have proved to be immensely testing for people all around the globe as we collectively experience unprecedented times. The global pandemic and subsequent lockdowns have put a temporary halt to everyday life, and severely affected the ability of people everywhere to generate a regular income from traditional employment, and business opportunities. With this in mind, we feel the time is right to remind members of our community of the possibilities to generate a passive income with Navcoin by staking NAV and by earning fees from participating in xNAV mixing.
Community Focused Financial Solutions
The core ethos of the Navcoin network is to provide people with privacy preserving solutions that allow them to express themselves financially and transact as they desire. In addition, our community acts as the foundation to an economically holistic network which relies on a number of mutually beneficial relationships and fairly rewards active network participants.
This is most easily illustrated by our Proof of Stake (PoS) system which allows any wallet holder to “stake” their NAV in order to help validate transactions and secure the network. The PoS consensus mechanism is an inclusive method of securing a network and allows all NAV holders to get involved and generate a passive income by simply staking coins in their respective wallets.
However, we have developed a system that allows for a greater range of options with regards to making transactions and this means that NAV can be transacted publicly across our network while xNAV supports completely private transactions. Having the two coins operate in tandem also results in opening up multiple opportunities for passive earnings via staking and by earning fees for taking part in the xNAV mixing process.
Earn by Staking NAV
We have designed NAV staking to be as intuitive and straightforward as possible and anyone can participate in validating transactions by downloading and installing the Navcoin Core wallet, transferring over their NAV, and then navigating to the settings in order to unlock their wallet for staking.
This easy to use system doesn’t require any elaborate setups, or consume vast amounts of resources and runs on regular laptops, in fact, the key requirement is simply to hold and stake NAV coins in your wallet.
With regards to validating transactions, there is currently a block reward of 2.5 NAV in place, with 2 NAV being redirected to the staker who found the block, while the remaining 0.5 NAV accumulates in our decentralized Community Fund.
As a result, NAV holders can generate passive earnings in a simple and straightforward manner, and also take part in community governance if they choose to. Anyone holding and staking NAV can participate in DAO voting processes with each stake being equivalent to one vote, which gives every wallet holder a say in protocol governance, and there is no minimum staking amount required for anyone to take part.
There are a variety of ways to participate in staking NAV, and you can get started by downloading and installing the Navcoin Core wallet, or NEXT wallet. Please note that staking via these wallets requires you to run a full node, and to keep your node online 24/7. They also have a slow syncing time, but pay out max rewards of approximately 2 NAV per block.
Some easy to use and straightforward to maintain options include the NEXT Lite mobile wallet for Android smartphones, which is a very light mobile wallet, and very easy to use. It does not require you to wait for syncing, and allows you to earn up to 1.8 NAV per block. The NavCash wallet is a light desktop wallet, which also doesn’t need to wait for synching, is easy to set up, and doesn’t need to run 24/7. It includes support for using the NavCash pool, to delegate to any other pool, or to use your own pool. When you use your own pool you can receive the max reward of 2 NAV per block, and when opting to use the NavCash pool, you will receive 1.8 NAV per block.
The NavCash wallet is very easy to use and can be downloaded by Windows, Mac, and Linux users, and also has support for the Ledger Nano S hardware wallet. You can find out how to set up your own pool for NavCash here, and find out more about the NavPool here.
Earn by Participating in xNAV Mixing
The development of xNAV has created an additional way of earning as our self-developed privacy protocol called Boneh-Lynn-Shacham Confidential Transactions (blsCT) obfuscates transaction details in a way that makes them completely private. Crucially, blsCT allows multiple transactions to be merged into one, and these transactions can be aggregated an infinite number of times.
Additionally, users can opt to merge their coins with other wallet owners making transactions on our network and receive a fee for taking part in the mixing process. When sending xNAV a user’s wallet sends an anonymous request for coins from other nodes, and the sender has the option to randomly select several coins from the responses received. These coins are mixed with the original user’s coins, and sent to the network, thus ensuring enhanced privacy and anonymity and making the tracking of coins virtually impossible.
Once again, while this system provides our users with full privacy it also enables a holistic economic network with all network participants being able to benefit financially from supporting mixing processes, and from building and maintaining key relationships between senders. Anyone who helps to facilitate the mixing-process by providing liquidity can expect fair compensation in the form of a fee for their service, and generate a recurring passive income for being a regular participant in the xNAV mixing process.
We very much hope that the ability to earn with Navcoin will help our community to navigate through these tough times, and we will continue to innovate over 2021 and increase the opportunities for our community members to generate revenues.
Towards the end of this month we plan to release a token bridge which will facilitate the creation of a “Wrapped Navcoin” token which can fully integrate with leading DeFi platforms and allow our community members to earn rewards from taking part in popular activities such as liquidity provision, lending, farming, and staking via these platforms.