As the Nimiq ecosystem evolves with its transition to Proof-of-Stake (PoS), the role of community decision-making becomes visible. Nimiq is moving forward with a community-driven voting process to determine the future of its Proof-of-Stake supply curve. This marks a significant step, emphasizing transparency, participation, and the verifiable nature of blockchain-based voting.
28 Mar
by
6 min
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.
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.
The process for participating in the vote is designed to be straightforward:
IMPORTANT:
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.
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.
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.
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.
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
None of the statements must be viewed as an endorsement or recommendation for Nimiq, any cryptocurrency, or investment product. Neither the information, nor any opinion contained herein constitutes a solicitation or offer by the creators or participants to buy or sell any securities or other financial instruments or provide any investment advice or service. All statements contained in statements made in Nimiq’s web pages, blogs, social media, press releases, or in any place accessible by the public, and oral statements that may be made by Nimiq or project associates that are not statements of historical fact, constitute “forward-looking statements”. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual future results, performance, or achievements to be materially different from any future results, performance, or achievements expected, expressed, or implied by such forward-looking statements. The final decision of implementing any changes to the Nimiq protocol, including its parameters, always remains with the decentralized node operators who agree what version and parameters to deploy and support.