NavCoin Collective
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NavCoin Collective

Our Community Focused Innovations

The drive to innovate and break new boundaries for cryptocurrencies have been significant factors underpinning all of our development work. In addition, supporting our passionate community, and remaining community focused are central to our operations and also help to guide our ongoing development. We place a strong focus on creating solutions that allow anyone to transact freely without intermediaries, and to interact across our network in a way that allows each user to maintain their own personal privacy. Having a highly involved community is key to achieving true decentralization and our network is supported by community members taking an active role in validating transactions and protocol governance.

Securing our Network with Proof of Stake (PoS)

Our network is secured by a Proof of Stake consensus mechanism, which means that anyone can use their NAV to help validate transaction blocks. The PoS mechanism is more inclusive in nature and allows all of our community members to act as network validators. By comparison, the Proof of Work (PoW) consensus mechanism that Bitcoin uses requires miners to operate powerful computers that are able to calculate huge mathematical problems in order to process transactions. The first computer that ‘solves’ the problem receives a reward for doing so and this mining process requires expensive hardware, access to cheap electricity, and is extremely energy intensive.

Proof of Stake does away with these resource intensive requirements and a 5v Raspberry Pi can successfully take part in staking on our network. We have also designed the NavCoin Core wallet to make staking as straightforward as possible, and in order to participate in validating transactions, it’s just necessary to install the wallet, transfer your NAV over, and then unlock your wallet for staking from within your settings. This easy to use system allows anyone to contribute to validating transactions, and simply just requires an individual to hold and stake NAV coins.

Decentralized Community-Based Governance

In addition to helping to secure the network, our PoS consensus mechanism enables all public NAV holders to get involved with governing our platform. There is no central authority controlling NavCoin, and community members play a crucial role in maintaining a fair and decentralized system of decision making.

As a result, NavCoin operates as a truly innovative Decentralized Autonomous Organization (DAO) with all protocol administration and consensus changes being subject to an open voting system. All community members holding their NAV on the public side can participate in the DAO by staking their coins, and each stake is the equivalent of one vote. This gives each wallet holder a say in protocol governance, and allows them to vote on any proposals that arise. To ensure widespread participation, there is also no minimum staking amount required for anyone to take part in voting.

Innovative Self Funding

Our governance system also incorporates a decentralized treasury and work to develop a self funding mechanism dates back to December 2017, when a vote was held to decide whether to move forward with establishing a community fund within the consensus model. The voting was in favour which led to a soft fork in June 2018 in order to reduce staking rewards to 4% per annum with 0.25 NAV being burned every block to the community fund. The fund was officially released in October and became the first decentralized dual-consensus model for on-chain governance.

Our community fund combines with our DAO voting system to ensure that contributors and projects can be compensated and funded by the network. Currently, there is a block reward of 2.5 NAV, with 2 NAV being redirected to the staker who found the block, and the remaining 0.5 NAV is accumulated in the community fund.

Proposals can be submitted to a DAO vote, and when a proposal is accepted, the requested funds can be locked. These funds can then be released to a designated address through one or more separate payment requests, and this ensures efficiency by allowing the community to check the quality of the work while the funds are released in part. At the same time, this system allows the author of the proposal to secure partial payments before fully committing to completing the scheduled work.

Our governance system continues to evolve, and in May this year, the NavCoin DAO extension was released. This extension enables the community to vote on the allocation of treasury funds, and on changes to its network consensus parameters. The extension also enables a non-binding on-chain voting mechanism called consultations.

Ease of Use for All

We also strive to ensure that the NavCoin platform is accessible and easy to use, and making peer to peer (P2P) transactions whether public or private, voting, and staking are designed to be intuitive processes for users of all experience levels.

In addition, cold-staking has introduced transactions being associated with two private keys instead of one. As a result, one of the keys is used for spending while the other is only used for staking, and this allows users to keep their spending key offline and to stake from completely secure, offline wallets.

We will continue to provide user focused solutions over 2021 and anonymous xNAV staking, and private voting will be launched later in the year. Don’t forget that the network vote for the activation of xNAV starts on the 1st February 2021 so make sure to keep an eye on our social media channels for all the latest updates.

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Simple to use cryptocurrency with optional private payments

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Fast, cheap and private. Cryptocurrency for everyone.

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