NavCoin Community Roundtable 004
Continued engagement from the NavCoin community proves to be the recipe for success as talking points and ideas flow thick and fast from new arrivals and old timers.
This month's first topic
Staking and Voting on Exchanges
Since NavCoin is a proof of stake network, the number of coins owned by a staking address is equal to the proportion of votes that address gets towards key network decisions like the ledger consensus, soft fork activations as well as the DAO functions like Community Fund proposals and payment requests. Until now that has meant the main network participants are the end users of the coins themselves, but recently some of the major exchanges have started to provide staking on behalf of the users with deposited coins in their system.
There is some concern in the community that since the exchanges have access to a reasonably large proportion of coins, if the exchanges decided to turn on staking it could make soft forks and DAO votes harder to pass.
While staking on exchanges could bring a new wave of users to the exchanges and introduce them to NavCoin, the impact of centralisation needs to be discussed and mitigated. One solution that was discussed was to create a tiered staking system where coins that are locked into a staking term would receive the full reward and have full voting weight while unlocked coins would have a reduced rewards and voting powers. Since economic nodes wouldnt be able to lock in the coins to a term it would reduce their weight on the network lessening the impact of their staking and incentivising users to withdraw and stake independently.
Some other options were discussed such as building an exchange integration for NavPool so users with coins on the exchange could manage their votes via the NavPool platform. Or potentially partnering with one of the smaller exchanges to integrate voting directly into their platform.
Ultimately the approach needs to be further discussed and designed but there are some good ideas there already which could easily help to mitigate the issues caused by centralised exchange staking.
More topics in the article
- Marketing Videos and YouTube Ads
- Community Trello Board
- Potential Europe Meetup / Conference
- Privacy Protocol Debate Continued
- Community Fund Reserve
Read the Full Article »
Continued engagement from the NavCoin community proves to be the recipe for success as talking points and ideas flow thick and fast from new arrivals and old timers.
This month's first topic
Staking and Voting on Exchanges
Since NavCoin is a proof of stake network, the number of coins owned by a staking address is equal to the proportion of votes that address gets towards key network decisions like the ledger consensus, soft fork activations as well as the DAO functions like Community Fund proposals and payment requests. Until now that has meant the main network participants are the end users of the coins themselves, but recently some of the major exchanges have started to provide staking on behalf of the users with deposited coins in their system.
There is some concern in the community that since the exchanges have access to a reasonably large proportion of coins, if the exchanges decided to turn on staking it could make soft forks and DAO votes harder to pass.
While staking on exchanges could bring a new wave of users to the exchanges and introduce them to NavCoin, the impact of centralisation needs to be discussed and mitigated. One solution that was discussed was to create a tiered staking system where coins that are locked into a staking term would receive the full reward and have full voting weight while unlocked coins would have a reduced rewards and voting powers. Since economic nodes wouldnt be able to lock in the coins to a term it would reduce their weight on the network lessening the impact of their staking and incentivising users to withdraw and stake independently.
Some other options were discussed such as building an exchange integration for NavPool so users with coins on the exchange could manage their votes via the NavPool platform. Or potentially partnering with one of the smaller exchanges to integrate voting directly into their platform.
Ultimately the approach needs to be further discussed and designed but there are some good ideas there already which could easily help to mitigate the issues caused by centralised exchange staking.
More topics in the article
- Marketing Videos and YouTube Ads
- Community Trello Board
- Potential Europe Meetup / Conference
- Privacy Protocol Debate Continued
- Community Fund Reserve
Read the Full Article »