- The Endowment
- The Endowment Managers
- The Market Maker
- Node Operators
- The Blockchain Policy Council
ndau introduces governance, stability, and dependability to the digital currency marketplace by fostering an ecosystem in which ndau holders digitally self-govern all aspects of the currency.
Governance within a digital currency system refers to the process of making decisions that apply to all facets within a cryptographical protocol. Rules are created, voted on, ratified, and implemented through various procedures. Historically, weak governance has led to uncertainty and stagnation which, in turn, has resulted in deteriorating confidence and increased price volatility as confusion begets panic.
While designing the ndau ecosystem, the Collective sought to adopt the premier aspects of existing currencies and use new techniques to eliminate misaligned incentives. The Blockchain Policy Council (“BPC”) is responsible for the operating policies of ndau and has the power to oversee other entities in the ndau ecosystem. For each improvement opportunity identified by the Collective, the BPC has formed a working group specific to that particular issue. These working groups include ethics, core software systems, privacy, public perception, trust management, and monetary policy.
The Endowment is a not-for-profit entity that serves as a mechanism by which the BPC can enact monetary policy and stabilize the currency itself.
The purpose of the Endowment is to hold the net proceeds from the release of reserve ndau and to use both to provide liquidity to the market by way of the Market Maker. The Endowment invests the net proceeds of its holdings according to rules and limits set forth by the BPC.
These rules and limits best suit the long-term risk and return policy objectives of the BPC across the spectrum of possible investment environments in order to support a balance of growth and long-term market liquidity. The Endowment is carefully managed, especially under stress scenarios, to ensure that it can provide liquidity within a set of reasonably staggered time periods.
The Endowment Managers
The Endowment must achieve investment returns sufficient to support long-term capital appreciation while generating spendable investment income and maintain liquidity sufficient to support ndau monetary policies.
The Axiom Foundation (“the Foundation”) has been established “to promote blockchain technology for the benefit of humanity”. The Foundation’s Endowment is controlled by the Blockchain Policy Council (“BPC”) which has the fiduciary duty to administer and oversee the management of the Endowment.
This Endowment Investment Policies document serves as the guidelines for ensuring the Endowment’s investment objectives are achieved and so that all individuals with direct or indirect control over any aspect of the Endowment understand and manages the Endowment with this Mission and these Policies in mind. The Mission of the Endowment is to benefit the ndau ecosystem through acting as a liquidity resource that supports a more stable monetary policy.
The Market Maker
The Market Maker has the authority to release new ndau from the reserve and to permanently remove ndau from circulation. It is contractually obligated to take these actions as directed by BPC monetary policy.
When ndau demand rises beyond the limit of what’s available in the market below the current Target Price, the Market Maker sells new ndau into the market at that Target Price, which increments higher every 1,000 ndau sold from the reserve. The net proceeds of those sales then flow to the Endowment as discussed above.
Conversely, when the ndau Market Price falls to the Floor Price, the Market Maker buys ndau through purchase orders it has placed at the Floor Price and permanently removes the repurchased ndau from circulation. The Market Maker also acts as a liquidity provider for ndau and aims to maintain stability and liquidity through its ability to buy and sell currency according to rules prescribed by the BPC.
An ndau node operator runs a computer on the global ndau network. ndau nodes validate transactions, reach consensus on the result, and add them to the ndau blockchain.
Unlike the Proof of Work blockchains used by Bitcoin, Ethereum, and other digital currencies, ndau uses a Proof of Stake protocol. Rather than rewarding a miner for performing complex and wasteful computations, Proof of Stake protocols rely on a node operator’s willingness to commit their ndau assets as “stake” to guarantee performance. Stake operates like a performance bond and can be forfeited as a penalty for erroneous, unreliable, or malicious behavior. Proof of Stake protocols greatly reduce the cost of operating an ndau network node, making node operation accessible to a much larger pool of participants. This larger pool ensures robust, reliable, and decentralized blockchain performance.
The Blockchain Policy Council
When structuring ndau, the Collective sought to utilize the best aspects of both digital and non-digital currencies and use new techniques to eliminate misaligned incentives.
In doing so, the Collective created a self-governing ecosystem whose governance is led by a non-profit organization called the Blockchain Policy Council (“BPC”). The BPC is responsible for the operating policies of the currency and has the power to oversee other entities in the ndau ecosystem.
For each improvement opportunity identified by the Collective, the BPC forms and supervises a working group specific to that particular issue. These working groups include, but are not limited to, ethics, core software systems, privacy, digital governance, public perception, trust management, and monetary and incentive policy. The BPC comprises nine delegates. The nine delegates consist of three different groups of three individual persons, with each group representing a different class of stakeholders. The three groups are: Initiators, Founders, and Holders. Each group is elected through different election protocols.