nextDAO is preparing to launch a new upgrade with the intention of embracing a broader world of crypto-asset innovation. In alignment with this vision, NAX will also upgrade from a sole incentive currency to a more inclusive collaborative incentive ecosystem.
The Nebulas Foundation invites all NAX holders to participate in a vote to determine the future of NAX.
Overview nextDAO and NAX
nextDAO is Nebulas’ platform underpinning smart assets focusing on on-chain interaction and collaboration. It has redefined Nebulas’ token economy by providing decentralized financial tools and products by supporting the community via smart assets and the expansion of ecosystem applications.
The NAX token is currently used for community governance and decentralized collaboration via nextDAO. In addition, NAX is currently used in Nebulas’ node voting and community governance voting.
All who hold NAS have been able to easily obtain NAX by participating in dstaking (decentralized staking) their NAS. The distribution of the NAX tokens to the community represented economical motivation to the community for assets holding quantity and the holding duration.
The Current Situation
The actual total issuance of NAX is related to the global dStaking rate of NAS. Simply put, the more NAS dStaked, the more NAX distributed to Nebulas addresses while burning a large portion during every distribution cycle. Nebulas’ dStaking program was launched on September 11, 2019 and as of June 30, 2021, of the total 10 billion NAX planned for release, 2,045,315,851.64 NAX has been released into circulation while 2,635,768,896.68 NAX have been automatically burned (see explorer.nebulas.io and the NAX whitepaper for more details).
The Nebulas Node Strategy has been a strong use case for NAX. Community members and/or node operators are able to vote for nodes by staking NAX often in exchange for incentives. There are currently 60 active Nebulas nodes with 901,232,120 NAX being delegated to nodes. This accounts for 44.09% of the total NAX circulation (see node.nebulas.io for more details).
The Nebulas community governance system go.nebulas also utilized NAX for project and proposal voting. At present, there have been 15 community governance cycles accounting for the fate of 206 proposals and projects (see node.nebulas.io/govern for more details). In addition, there have been 6 community governance votes using NAX (see nebulas.io/community.html for more details).
With the wave of innovative financial and decentralized assets such as Defi and NFT projects, dStaking no longer supports the characteristics of scalability and comparative functionality which has not been enough to inspire the community for further advancements. We believe that for nextDAO to expand and thrive, it is in the best interest of the community to stop the distribution of additional NAX. We believe NAX has completed its historical mission as a reward for holding NAS and it’s time to explore more cross-chain tools and new incentive mechanisms.
Since NAX is only used as a voting tool and lacks in-depth participation in community governance. The limited use-case results in the lack of real feedback within the operation of a DAO and transformation is imminent.
With the evolution of blockchain technology, it’s necessary to continuously review active projects and explore potential improvements. We believe that an upgraded version of nextDAO should support more cross-chain blockchain networks and become an accelerator of innovative new projects. It will focus on innovative opportunities such as the Difinity ecosystem, Web 3.0, and using DAO as a collective to discover potential valuable, high-quality projects in the market. This will reduce information asymmetry in the investment market and share return on investment brought by value discovery with members of the nextDAO community.
With the proposed upgrade of nextDAO, NAX will also change its original dstaking issuance model by upgrading from a single currency holding reward to a more comprehensive collaboration incentive mechanism. This includes voting rewards, governance rewards, participation in start-up projects, token sharing, expanding application scenarios, and much more.
The Community Vote
To make all this possible, the majority of the community needs to support the future of nextDAO and initially support the suspension of NAX dStaking distribution to make way for an improved method for decentralized collaboration.
The launch of this vote is proposed by the Nebulas Foundation and is related to the vital interests of all NAX holders; we hope everyone participates in this very important vote.
Voting webpage: nebulas.io/nextdao-upgrade-vote.html
Voting time and duration:
- Voting begins July 7, 2021 at 3:00p.m. (Beijing time, UTC+8)
- Voting Ends July 10, 2021 at 3:00p.m. (Beijing time, UTC+8)
- Support: agree to prepare nextDAO for a significant upgrade and suspend the distribution of NAX via dStaking.
- Against: Maintain the current nextDAO ecosystem and retain dStaking rewards.
After visiting the above listed webpage, select “Support” or “Against”, enter the amount of NAX you wish to delegate to your position, and complete the process via NAS nano Pro by scanning a QR code to submit your vote.
- All NAX holders can participate in voting. One NAX represents one vote; there is no limit to the amount of NAX voted by each person.
- Voted NAX will be returned within 3 business days after voting ends.
The option that receives more than 50% of all votes by the end of the voting cycle will be approved. The result of this vote will determine the future of nextDAO including the direction of development.
If the community supports the upgrade of nextDAO, the suspension of dStaking and NAX distribution will be implemented within one month after the voting results are released. The specific data will be announced separately and a lite paper will also be released to illustrate the development path of nextDAO.
- If dStakng is suspended, the use and transactions of NAX will not be affected. You will still be able to use NAX to participate in node voting, swapping, etc… It will not affect exchange transactions.
- The suspension of dStaking means that no new NAX will be mined before the new distribution rules are announced. The 2 billion NAX issued will not be burned.