In 2021 the Navcoin community accidentally created the future of Cryptocurrency. Within a few short years the little know crypto currency known as Navcoin that came into existence in 2014 in the early stages of the Navcoin revolution. At the start of 2021 it ranked lowly as one of the top 500 currencies but by the end of that year had surpassed all competitors with its unbeatable combination of a store of value that was not only a great investment on its own but also paid interest at up to 5% for NAV (the public block chain store of value crypto currency) or paid significant mixing rewards for xNAV the anonymous version known as the anonymous gold standard.
What accidentally shot Navcoin into the lime light was a single accidental transaction, or one carefully orchestrated by the community, no one really knows how it happened, on the transactional version of Navcoin, the currency rather than a store of value, wNav that spanned operational use across BEP-20 and ERC-20 platforms. wNAV was initially released with a 1:1000000 conversion rate between NAV or xNAV and wNAV. A transaction occurred on a distributed exchange for the currently active NAV or xNAV exchange rate of 0.89 cents on the wNAV token rather than the effective rate at the time of 0.00000089. Prior to this it was vaguely recognised that wNAV had one of the largest circulating supplies of all crypto currencies and tokens with a circulating supply of over 71 Trillion coins. This automatically sent the price of NAV to over $890000 dollars and gave NAV a market capitalisation of over 63 Trillion dollars making it the most expensive individual asset class the world had ever seen and exceeded the market capitalisation of the entire US stock market at the time. This sent arbitrage platforms into a spin creating a massive readjustment of market capitalisations across the entire crypto currency industry. The ripple effects are still felt to this day many years on from this event. It would take many years to return to these levels. Having shot into the spotlight and been recognised as having the lowest transaction fees available, low inflation, built in support for anonymity and a coin supply capable of making it the currency of the world and utility not seen in anything before it, these features made it the clear winner from the start of the Navcoin currency revolution and the blockchain platform the has taken Navcoin to be the blockchain of choice across all industries, the gold standard of the revolution it created.
So is this possible, probably not, but can it happen if NAV, xNAV and wNAV are treated with equal value and can Navcoin take its natural place based on its tech as a top tier crypto currency. It can and will we just have to make it happen as a community, support the core dev team and build the other core support teams that need to be in place to make it happen. Although a hypothetical scenario that would be good for anyone holding even a small amount of Navcoin it highlights a few issues for us to get to where we want to be.
We are a top 400 alt currency and was a top 500 alt currency not too long ago. There are over 480 alt currencies with a market capitalisation that exceeds Navcoin. This means we are not significant, we do not get noticed and even the best of tech gets lost in the noise of the 480 coins with a higher market capitalisation. Is this where we want to be and is this where we want to sit. Does xNAV improve the situation, well yes it did we moved from the low 500s to the high 400s but in reality we pretty much sit where we were in the hierarchy of the crypto world.
It is going to take some luck to get where we want to be. Someone tweets about Navcoin, something happens to a higher ranked competitor or a massive DAO driven marketing campaign brings us into the spotlight. Nobody disputes the tech that Navcoin has but how does anybody know about it?
Markets do not always behave rationally and when they are not fundamentals have little importance at that time. Of course those fundamentals determine where we sit when things settle down but our market capitalisation is not based on tech. The market capitalisation is based on the tech we are going to have, what we stand for and what we are perceived to be or how we are determined to be placed in 1 month, 1 year, 5 years or 20 years into the future.
So NAV represents a staking currency that basically earns a rate of interest based on our proof of stake model. It therefore naturally aligned to operating as a store of value rather than a currency but with the advantages of its roots as a crypto currency. xNAV represents an anonymous currency that can earn revenue by generation of mixing fees. wNAV represents a token of exchange with the purpose of integrating into the larger distributed finance eco system. On this basis NAV represents a store of value similar to how Bitcoin is used now with a high value and high transaction fees but earns interest as well as increasing in value over time. xNAV represents a unique store of value that is anonymous has a high value but is expensive to use but also is a great store of value with mixing fee generated stored xNAV. So wNAV is a low value, agile, low cost token of exchange and as such is representative of NAV and xNAV in a ratio of 1:10, 1:100, 1:1000 or even 1:10000. On its own wNAV does not represent a multiple of NAV or xNAV we have to decide this is how we want wNAV to be perceived and this is how we want NAV and xNAV to be perceived. If we do not believe in this ourselves then why would someone else.
The main purpose of the changes I am proposing is that the community fund be allocated significant funds with the intention of assisting the core dev team in the work it does. There are a few concerns about the community fund that I did not have going into this. There appears to be some thought that the community fund has approved scams and wasted funds on things and that is on us as a community and not a fault of the community fund. There a reasonable population of the community that believes the community fund has all these funds sitting there and no one is using them and that is not the fault of the community fund that is also on us as a community. If we do not take responsibility for this then the failure is because of us as a community and the concept of DAO is a failure. We have to make this work better and as a developer myself, although not a Navcoin developer, all of this is not a natural position that sits well with me but I recognise there is a need for change, a lot of the opinions are based on technical fundamentals and market fundamentals and although these are important their importance is not black and white.
So what would the community fund need 1 million NAV for when it can't even use what it has let alone 50 million NAV and as it operates now it does not. Token Sale $144,630,000 RECEIVED Polkadot (DOT) was one of the largest ICOs of the time. Specifically, the company secured around $145 million. This hack resulted in a combined loss of around 150 million USD. Sadly, Polkadot’s ICO funding accounted for around 60% of the funds frozen during the hack. This loss of funding slowed development during the early days of the project. Just as one example, maybe a good one but they had their ups and downs to. They started out with $145M and I have suggested 50 million NAV that equates at the moment to around $25M. We have done something similar with no ICO and a community which is a fantastic thing but we are competing with well funded entities with corporate structures which has advantages but many disadvantages in crypto. So summed up the community fund as it stands does not need any additional funds. The community fund of the future needs significant fund for Navcoin to stop hiding behind its great tech and build better tech, a bigger community and a community fund and DAO that is the envy of every project. It should be a shining model of how DAO operates.
So there are a few issues with DAO beyond the community fund. There is no one person responsible for or representative of Navcoin. In the real world this presents a problem as you cannot register a website as you need a real person, you cannot pay someone legally in most countries as you need a person or corporate structure and cannot get funding or have a bank account. These issues have not presented a problem for Navcoin to this point as community members have put their names to things, paid for things and represented Navcoin as a DAO. This makes it difficult to utilise the community funds in a traditional way. So it means we needs to find entities that will accept payment in NAV and payments for any work on Navcoin has to occur in NAV and by improving the utility of Navcoin it does not solve these issues.
The DAO is operating at a high level as it should and the core dev team has built xNAV and working on wNAV without any decisions via DAO. The work was done and the decision to move to xNAV was voted by installing 6.0. I believe that is how it should be but the question is if this went to a vote via DAO and took weeks to make a decision would we be where we are now, we would I believe but it would be later in the year. So this highlights the issue of DAO it needs to make the high level decisions but leave the decisions as to how we get there to the core team responsible for it. The core team should not be the core dev team it should be made up of all the functions required to operate a first rate crypto currency. We have the great minds of the core dev team making day to day decisions but they do so without the support structures to do what they do best. So the question is do we want to continue as it is or build that support structure around the core of Navcoin which is the core dev team. The community has a part to play and is assisting but not at a level to make us the first class project that we can be when we compare our operations with those we aspire to be ahead of in the crypto currency race.
Cryto currency is still at the beginning and Bitcoin is king now but no one is watching while we are positioned where we are. Lets use what we have to make Navcoin the future of crypto currency gold with NAV and anonymous gold in xNAV as stores of values with the utility of currency with low fees and coin supply like wNAV. Take DAO and the community fund to the next level and build the platform of distributed finance that nobody but the Navcoin community saw coming. Take note of some of the comments that come from beyond our community and we generally consider spam but some of them have a grain of truth, most probably not the case, and we should not be concerned about this but should reflect on them as we are in a bubble and we need to look beyond the bubble of Navcoin.
On the basis of the above I will modify my consultation to include an option for a xNAV/NAV to wNAV swap ratio of 1:100, 1:1000. I have nothing against the idea of 1:10 or 1:10000 but I am not comfortable with 1:10 and see 1:10000 as hard to accept given the community I know and love! If this were to occur NAV and xNAV would be treated as if it were to become a store of value longer term and the need to change the reward or community fund percentage would be irrelevant.
The consensus parameter changes for amount of NAV per block as 10 remains and although there are concerns about inflation I still fail to see the issue with xNAV and wNAV. If this occurred on its own without the proposed changes to the community fund I believe there would be more community support. This change should not occur if NAV is intended to operate as a store of value in the future as the aim would be to minimise inflation rather than increase it.
The consensus parameter change to the community fund percentage surprised me. I believe the community fund used effectively is a valuable part of a better DAO. I do not believe there is currently support for improving the financial position of the community fund but I could be proven wrong. I tend to agree we may not deserve a bigger better community fund until we have proven we can make the best use of what we already have. But beyond how it has been used it would be important to make Navcoin a forced to be reckoned with and we may only get to that point if the value of NAV/xNAV and wNAV have significant value. Regardless of how we might get there or not the community fund needs to be better utilised.
https://www.reddit.com/r/NavCoin/comments/lovf8e/10_nav_per_stake_50_community_fund_proposed/
https://www.reddit.com/r/NavCoin/comments/loxcb2/10_nav_per_stake_50_community_fund_target_top_100/
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