Community Fund
Anyone and everyone on the network will be able to propose projects, budgets and initiate network votes to schedule funds.
Anyone and everyone on the network will be able to propose projects, budgets and initiate network votes to schedule funds.
Community Fund
NavCoin is an open-source project to which anyone can contribute - it is a community initiative that ran no pre-mine or initial coin offering. As a community we have ambitious goals for NavCoin and it’s supporting software.
While the NavCoin Core developers do their best to find funding and build projects independently, the community fund is a decentralised way to fund NavCoin projects and further encourage the decentralisation of the development of NavCoin.
Following the community suggestion to enable contributors to receive funding from the network for their work, the NavCoin Community Fund was voted on early in 2018 and achieved consensus across the network.
Because NavCoin is a decentralized open source project it was important that the community had the opportunity to do due diligence prior to this change to the network. First let’s review what the changes are, and then we’ll take a look at how the Community Fund will work once it’s launched.
The following points were voted on and approved by the network.
Proof of Stake rewards reduced from 5% to 4% per annum.
Each block staked will generate 0.25 NAV per block for the NavCoin Community Fund.
Anyone and everyone on the network will be able to propose projects.
The NavCoin Community Fund will be protected by network consensus – proposals will never be accepted without a positive vote from a majority of NavCoin stakers.
Scheduled funds can only be released by another network vote when NavCoin stakers confirm the proposal was completed successfully. No funds are received until work is agreed as complete.
If the work is never completed, the scheduled funds are returned to the NavCoin Community Fund.
No one (not even the NavCoin Core developers) owns or can directly access, manage or curate the NAV in the Community Fund or how it is distributed. The fund has no private key which can spend the NAV, the only way they can ever be spent is by the dual network consensus vote.
Currently approximately 40% of the 62M NAV in the network are used for staking. This means the network generates approximately 1.24M NAV per year. Therefore 1% of the proof of stake rewards approximately equals 250k NAV per year which is roughly 0.237 NAV per block with NavCoin’s 30 second block time.
Why isn’t it calculated as a percentage?
The NavCoin Core developers suggest using a fixed amount of 0.25 NAV per block rather than a calculation based on 1% of the amount staked to protect the network against attackers who could aim to remove coins from staking to constrain the financial capabilities of the community and to protect the fund from extreme fluctuations.
The Community Fund is currently in testing, and once the Fund is launched it will work like this:
Dream up the improvements or new projects you would like to see in the NavCoin eco-system. This could be anything from protocol changes, new applications that run on top of the NavCoin protocol, third party services, websites, promotional activities, or even less direct activities like charity donations.
Document your ideas on the NavCoin Community site and and discuss it with other people involved in the NavCoin community.
If you’re unable to complete the work involved in your proposal yourself, you will need to assemble the team necessary to make your proposal a reality.
Figure out how much NAV you need to complete your proposal.
Create and submit the Community Fund proposal to the NavCoin blockchain for voting.
Promote your proposal to NavCoin stakers who will decide if your proposal has been well constructed and that it can be completed satisfactorily.
If the proposal gets locked in, it’s time to do the work. You and your team need to complete whatever task you set yourselves in the proposal so you can claim the NAV from the Fund.
Retrieve the funds as payment for the work you’ve done.
Once you’ve done the work outlined in your proposal, a second round of voting will take place to release the funds. Present and promote your work to the NavCoin stakers to get them to agree that you have finished the task defined in your proposal.
Funds can be released in multiple stages. For example, a proposal can indicate that it requires 10% up front to get started. The proposal must be accepted first, then a payment request vote must be completed to release the first 10%. The remaining amounts can be claimed at any later date within the proposals timeframe.
The soft fork for the reduction of the staking reward to 4% and the beginning of the accumulation of the community fund has passed! The NavCoin Community fund is now accumulating at a rate of around 5000 NAV per week. The mechanism to create proposals and receive funds is still being tested. For now you can check out the community fund balance below.
Anyone and everyone on the network will be able to propose projects, budgets and initiate network votes to schedule funds.
The requested amount is scheduled when the proposal is accepted, but the funds are only released by a second round of voting.
The aim of the Community Fund is to further decentralise the development of NavCoin projects amongst the community.
The NavCoin Community Fund is currently undergoing testing on the network. If you want to help with testing join the community on Discord. There's a bug bounty programme in place, so you could even earn some NAV if you find something the developers need to fix.