In the wake of the consideration phase detailed in the previous blog post “Nimiq Proof-of-Stake Supply Curve Update”, the stage has been set for a pivotal voting process. This process is designed to determine the future of the Nimiq supply curve as it transitions to Proof-of-Stake (PoS). 

Starting on Thursday March 28, 2024, every stakeholder of the Nimiq community will have the opportunity to participate in a vote on three curve options for the PoS supply curve adjustment (plus the choice to not go with any of these options). The voting process will remain open until the end of Saturday April 13 UTC (block #3141223), and will be facilitated through the use of Nimiq wallets. NIM holders will be able to cast their votes in a transparent and verifiable manner on the Nimiq Blockchain by visiting the voting website.

The Options for Voting

Based on the detailed insights shared in the previous blog post regarding the transition of Nimiq to Proof-of-Stake (PoS) and the thoughtful dialogue that followed within the community, a comprehensive understanding has been achieved. 

The options presented for the upcoming voting process have been discussed thoroughly, taking into account the suggestions and diverse perspectives and insights shared by community members. The main challenge is to balance the long-term sustainability of the network with the competitive dynamics of the broader cryptocurrency ecosystem, ensuring that Nimiq remains at the forefront of innovation:

Option A. The Preservation of the Initial Absolute NIM Reward (GREEN Curve), as per the outcome of the emission curve vote from 2020: This option proposes the retention of the initial emission rate at 525 NIM per minute, adjusting the annual reward reduction percentage to about 3% to extend the timeline for reaching the total supply target in ~94 years.

Option B. The Preservation of Initial Annual Supply Growth (RED Curve), as per the outcome of the emission curve vote from 2020: This approach aims to maintain the initial annual supply growth rate at 4.1%, which equates to an initial absolute emission of approximately 1000 NIM per minute. To adhere to the envisioned total supply target within the projected timeline, this would require an accelerated decrease in rewards, with the annual reduction rate heightened to about 6%.

Option C. The Current and Original Emission Curve (GRAY Curve): This option suggests maintaining the current Proof-of-Work emission curve, without any emission rate changes for the transition to Proof-of-Stake.The PoS staking reward per minute would match the current reward per block and its reduction in time. This choice reflects a commitment to the original parameters set at the network's inception, emphasizing stability and continuity in the emission strategy. 

Option D. None of the above

Voting for this choice means there is further need for discussion. It would be up to the community to decide what happens then, which may result in a new vote or something else. It should be noted that this very likely would cause a delay of the switch to proof-of-stake as it may take quite a while to establish consensus.

Instructions for Participation

The process for participating in the vote is designed to be straightforward:

• Commencing March 28, 2024, the community is invited to visit the voting website.
• Voters will utilize their Nimiq wallet to register their vote by signing a 1 Luna (0.00001 NIM) transaction with the vote embedded as a message.
• Each vote will be securely recorded on the Nimiq Blockchain, ensuring that it can not be manipulated as well as that it can be independently verified.
• The voting window will remain open until the end of April 13 UTC, 2024 (block #3141223), offering ample opportunity for community engagement.

IMPORTANT: 

1. You can NOT vote with funds held in exchanges or third-party wallets as these do not support the required custom public messages in transactions, which are needed for the vote to be recorded on the blockchain. You can also not vote with funds in vesting contracts (please move available funds to a regular account address first).
2. Your vote will be automatically submitted through the Nimiq Voting app by sending 1 Luna (= 0.00001 NIM) to the preset burn address (an address that will be derived by the voting app based on the hash of the voting setup. This makes it verifiable that the setup is not changed during or after voting). The transaction contains the vote in the form of a public message recorded on the blockchain.
3. What counts is the balance (1 NIM = 1 Vote) on your voting address AT THE CLOSING OF THE VOTE WHEN A SNAPSHOT OF THE BLOCKCHAIN IS TAKEN AT THE FINAL BLOCK. For example: if you submit a vote and then move the funds away from that address before the end of the voting period, the balance on that address will be zero, equivalent to no votes. Note that of course, you can vote again with your new address that now has the balance. This prevents anyone from using their balance(s) more than once.
4. You can change your vote by voting again with the same address. Only the last vote of an address counts, at the end of the voting period, with the balance it has at that time.
5. Do not wait until the last minute to submit your vote. Things always take longer than expected and this way you can also correct your vote in case you made a mistake or changed your mind by re-submitting your vote.
6. Please follow our social media for announcements of any unexpected changes to this timeline.

Step-by-step Guide

Step 1: Visit the Vote App

Step 2: Rank the choices

The curve choices are randomized in their position when you enter the voting app. Drag them into the order of your preference before submitting your vote. You can read more about the curves in the latest Blog post as well as this forum discussion.

Step 3: Select your address

When you have finalized your ranking, click “Vote”. The familiar Nimiq Checkout dialog will appear. If you have multiple addresses, you will be asked to select one.

Step 4: Submit your Vote

After selecting your address, you will be prompted for your password. If you are voting with an address stored on a Ledger hardware wallet, connect your Ledger and confirm the transaction in the Ledger Nimiq app. After you confirm, the transaction will be processed and your vote recorded on the Nimiq Blockchain.

Step 5: See the Results

After your vote has been submitted, you will be able to see the preliminary results. Note that your vote will take a few minutes to be recorded on the blockchain and enter the calculations. You can still vote again if you change your mind. Also, you can vote with every address that has a balance to maximize your vote (instead of moving all your NIM to a single address to vote from). Only the address balances at the end of the voting period count towards the vote. In other words, for your voting balance to count, do not move your funds before the end of the vote.

What’s Next?

The vote is scheduled to commence on Thursday, March 28th, at approximately 12:00 PM UTC.  

All official information and results will be shared through Nimiq’s Twitter account, ensuring the community remains informed. Make sure to stay tuned for updates.

Huge thanks to the entire community for their invaluable support on this journey. It is now more important than ever to spread the word about this pivotal voting process—please share this opportunity with everyone you know, inviting them to take part in shaping the future of Nimiq.

Pura Vida

Team Nimiq