NavCoin Staking – Everything You Need to Know
Today, we’ll familiarize ourselves with staking NavCoin. It’s an open-source currency, the code of which is publicly available for review. The managing of transactions and issuing of new NAV coins is done by the network as a whole. Anyone can participate in the development and usage of NAV, it has no single issuer, nor is it controlled by a single entity. The decentralized nature of the project is further enforced by the community which decided not to run any sort of pre-mine or initial coin offering. As such, everyone is free to join and can start earning rewards from staking on equal grounds.
Contributors to the project aim to fund and develop it independently. There’s a dedicated community-subsidized development fund that serves to further encourage the decentralization of NavCoin.
In this article, I’ll cover the steps necessary to start staking this people-oriented coin and what you might encounter during the setup process.
Pros & Cons
- There’s no minimum amount required to begin staking
- NavCoin is a stable project with a long history since 2014, which in turn translates into a good long-term perspective for investment
- Various wallet choices depending on users’ needs
- Dedicated Raspberry Pi wallet (NavPi) for greener and easier staking
- Cold staking in beta testing as of writing this article
- There are no masternodes available
- Relatively low ROI (fixed at 4% yearly) compared to other PoS currencies on the market
- No official whitepaper yet, the release is expected by the end of 2018
How to Stake NavCoin
Staking NavCoin (NAV) is an interesting prospect. It allows you to support a decentralized project while also making a guaranteed profit. While it’s ROI is fixed at 4% per year, it allows you to predict your potential income and offers some level of stability, compared to other competitors.
Below, you’ll find the necessities to getting started with NavCoin staking.
Minimum Requirements
- Staking is possible on Windows, MacOS, and Linux
- You’ll need NavCoin* wallet installed
- At least 3GB of HDD space
- 1GB of RAM
- Static IP
- Reliable internet connection for 24/7 access
- No minimum amount of coins required, yet the maturity period is 240 confirmations
*There are alternatives available, yet not all of them allow staking. For example, you can use Core Wallet, NavPi Stakebox, NavCoin M8, and Next.
As NavCoin is a pure staking coin, obtaining it is only possible via an exchange. Whether that be crypto to crypto or fiat-crypto, that would be your personal choice. I’ll assume you’re just getting started in the world of cryptocurrencies and thus I can recommend two options – LiteBit and Binance.
Some exchanges provide an address for your account, however, as they’re generally not the safest place to store your coins, we recommend you install one of the previously mentioned alternatives. Once you’re done with that, you’ll have your own wallet address which to transfer your funds too.
NavCoin staking can be performed using a Graphical User Interface (GUI) wallet, which is best suited for beginners or via a Command Line Interface (CLI) version. I recommend the latter to advanced users or those of you who wish to minimize the resource draw. The CLI wallet is mandatory when using a Raspberry Pi for staking.
In the next section, we’ll go over how to set up both variants and get started with staking.
NavCoin Core Wallet Setup (GUI)
Step 1: Download & Install the official Wallet
Head on over to the official website and download a wallet of your preference. As I previously mentioned, you can use NavCoin Core Wallet, NavPi Stakebox, NavCoin M8, and Next for staking. For the purposes of our example, I’ve chosen the Core version.
Once you’ve decided, launch the installer. You’ll be asked to choose a destination folder, where all the data will be stored. Keep in mind that you need at least 3GB of space for the blockchain download. Once you are ready, you can launch the program and complete the synchronization. If you’re having issues with finding peers to download from, click on “File” and then on “Bootstrap Blockchain”. This will allow you to download the blockchain from a trusted source, i.e. the NavCoin Core team in this case. Do be aware to enable this function, you’ll need at least 1000 blocks of the chain synchronized already.
Step 2: Encrypt the NavCoin Core Wallet
Preventing unauthorized access to your funds is as crucial as ever. To do so with your NavCoin wallet is easy as clicking on “Settings” and then on “Encrypt Wallet”.
You’ll see a new window pop up where you should input a passphrase. I recommend you choose a unique one – it’s going to be your access point to unlocking your wallet and sending or receiving money. As such it is vital that it’s a secure one. Make sure you record your passphrase somewhere in case you forget it. Once you’re done, continue and wait for the wallet to close itself.
Step 3: Back up the Wallet
As with encryption, backing up your wallet is another safety measure. I recommend you do not skip it as it ensures you have another copy of all your data and hence, your money. To perform this task, you have two options available.
The first one is to open the “File” menu in your wallet and click on “Backup Wallet”. A new window will open where you’ll be asked to choose a location to store your backup.
The alternative method is to copy the “wallet.dat” file and keep it somewhere safe. Be that an encrypted USB stick, external HDD etc. Make sure no one else has access to the file, except you.
Step 4: Transfer Coins to the Wallet
Time to transfer our coins to the wallet, but first we need an address. Click on “Receive”. You will see a QR code and a long text consisting of words and numbers. This is your address.
Below, there should be a button “Copy to Clipboard”. Press it and it should copy your address. (Note: Always be sure to check the address after you paste it anywhere as errors or misspelling may occur and if you send your coins to a wrong address there is no way of getting them back)
After you click on “Copy to Clipboard”, go back to the exchange and send 1 NAV to that address. After you’ve confirmed that the coin you send to the address is received you can send the rest of your coins to the address. This is done to avoid misspelled addresses or wrong copy of addresses.
Step 5: Unlock the NavCoin Core Wallet
To finally be ready to stake NAV, you must wait for 60 confirmations (around 30 minutes) from the network to find out whether you’ve received your coins. You can easily check how many are already done by hovering with your mouse over the transactions. Afterward, you’ll need to wait for another 180 (240 confirmations total) in order for your coins to mature and be eligible for staking.
Press “Settings” and click on “Unlock wallet for staking, type in your passphrase and click at “ok”.
Now you should see a small lock icon in the bottom right corner. Hover your mouse on it and it should say “unlocked for staking”.
If you don’t see the icon at the bottom of the wallet that means that something is not correctly configured. Go to Help > Debug Window and type in: getstakinginfo This command will show you which steps are incomplete and will help you understand where you need to make a change. If everything is in order, congratulations, you’re now staking NavCoin!
Staking with the Command Line Wallet (CLI)
Another method of staking is by using a CLI (Command Line Interface) wallet. This option would be most beneficial for users who need the least amount of resource draw on their device or simply for the enthusiasts among you who are eager to tinker. For the purposes of this guide, I’ll assume you are running a Linux system, which is why I’m going to go through the process on Ubuntu.
Step 1: Download & Installing
For starters, let’s download and install the wallet. Type in the following lines in the terminal:
sudo apt-get install git
sudo apt-get install curl –y
curl –s https://api.github.com/repos/NAVCoin/navcoin-core/releases/latest | grep browser_download_url | cut –d ‘”’ -f 4
These commands will provide you with a link to the latest version of the official wallet. As we’re on Ubuntu, the file extension of your download will be tar.gz. Copy the provided address and use it for the next command:
wget <insert link for .tar.gz here>
For example:
wget https://github.com/NAVCoin/navcoin-core/releases/download/4.3.0/navcoin-4.3.0-x86_64-linux.tar.gz
After you’re done, we’ll need to unpack and remove the unnecessary file. To do so type in:
tar -xzvf navcoin-4.3.0-x86_64-linux-gnu.tar.gz
For unpacking the files, mind the numbers if you have another version.
rm -rf navcoin-4.3.0-x86_64-linux-gnu.tar.gz
The above command will delete the origin file after you’re done with unpacking.
The next step would be to launch the wallet, type in the following:
cd navcoin-4.3.0/bin
./navcoind -daemon
At the time of writing this article, 4.3.0 is the latest version available. When there’s a new one available, you’ll simply need to adapt the numbers. To make sure which one you’re running, you can use the double tap command:
cd navcoin[double tap]
cd bin
./navcoind -daemon
Now, let us move on to the next step in the setup process.
Step 2: Encrypt the CLI Wallet
As I previously mentioned, encryption is a crucial step towards higher levels of security, but I am sure that most of you interested in CLI wallets already know that. Either way, let’s go over the process. Type in the line below:
./navcoin-cli encryptwallet <your password>
Make sure you remember your password and record it somewhere safe just in case. If you forget or lose it, no one will be able to help you and you’ll lose access to all your money.
Once you’ve decided on a password and hit “Enter”, the wallet will shut down. To relaunch type in:
Step 3: Backup the CLI Wallet
Another important step which shouldn’t be skipped is creating a backup. To do so, type in:
./navcoin-cli backupwallet <<our selected folder / external driver / USB]>
For example:
./navcoin-cli backupwallet ~/navcoin-4-3.0/bin
Step 4: Transfer Coins to the Wallet
Now, to start staking, we’ll need some coins. To receive them, however, we need an address. Let’s create one:
./navcoin-cli getnewaddress
Once you have the string, use it to send yourself 1 NAV to make sure the address is correct. You’ll need to wait for 60 confirmations to make sure you’ve received the funds. Once that’s done, you can send over the rest of your funds. Afterward, you need 180 confirmations (240 total), for your coins to mature and be available for staking.
Step 5: Unlock the CLI wallet
Before we can start staking, we first need to unlock the wallet. Doing so requires the following command:
./navcoin-cli walletpassphrase <passphrase> 0 true
0 – the number of seconds which your wallet will stay unlocked. 0 means unlimited
true – unlocked only for staking
That’s it! You’re good to go. To make sure everything is in order, type in the following line:
./navcoin-cli getstakinginfo
The result from it will show you if you’ve missed any steps – it will have “false” written next to anything that’s not configured or fully completed.
NavCoin Staking Reward
A unique element of NavCoin staking is the fixed return percentage. Some of you may consider it to be a drawback, others will see it as a benefit, as it offers them a guarantee to an extent. No matter your point of view, what you can expect to receive is a fixed 4% return on your investment, per year. During this period, you may experience different income, some days or weeks may be stronger, others less so. The algorithm is designed in such a way that by the end of the year, you will receive the total amount expected, no matter what.
The network architecture is such that there are no masternodes. Block rewards are split between stakers and the Community Fund. As such, development and further improvements by programmers are subsidized by the joint efforts of the network, using coins from said fund.
How to Maximize Rewards
You may have come across staking pools for NAV, yet none of them are recommended by the team behind the coin. As such, I recommend you avoid them. The algorithm of the coin is designed in such a way, that it will always give you a fixed percentage, no matter your efforts. The only way to earn more is by investing in more NAV.
Figure out Your Profit with the NavCoin Staking Calculator
Staking rewards are not distributed evenly throughout the year, nor are they received in bulk at the end of it. Some days or weeks you might see higher amounts, some lower. What matters is that in the end, as I already mentioned, you receive the total amount due. However, what the correlation to USD or Euro will be is impossible to predict, as the crypto market is volatile. Whatever your earnings are at the end, you’ll need to deduct your electricity costs from the total amount. For example, a raspberry pi running your staking wallet will consume around 18kWh per year.
FAQ
The short answer is no. As it’s a Proof of Stake consensus algorithm, new coins are issued via minting.
Yes, you can. You can either do it on your own by the use of a CLI wallet (the detailed guide is available in the article) or you can straight up buy a pre-configured NavPi. You can find the official setup guide here.
The initial period which would guarantee your funds are safely inside your wallet is 60 confirmations. To begin staking, you’ll need another 180 confirmations (240 total) to pass and your coins to mature.
You receive a guaranteed return of 4%. If that’s enough depends on your expectations. You can easily calculate your potential rewards.
Up to this point, there’s no cap on the coins’ issuance.
NavCoin is one of the oldest PoS currencies out there, a fork of Bitcoin. It’s a stable investment with a guaranteed ROI of 4%.
Make sure you’ve updated your wallet to the latest version, that your internet connection is working properly and that you’ve passed the maturity period.
About NavCoin
NavCoin’s launch can be traced back to May 2014, when it was initially known as SummerCoin, which itself was a fork Bitcoin. The name later evolved into Navajocoin after the infamous Navajo Code Talkers from World War 2. Subsequently, it was swapped for Navajo Coin or NavCoin for short.
Unique Selling Points
The development team have created a dedicated portable device that you can use as a staking node as well as the ability to setup a second machine (preferably a VPS) that can do all the work for you without any risk to your coins called Cold Staking.
Team
The team behind the project consists of Chief Engineer Craig MacGregor and Core developer Alex V. In any case, they’re open to further improving the project and keep in touch with all suggestions from the community.
Network
The network of NavCoin is based on a Proof of Stake consensus algorithm while the amount of coins is uncapped. In a case where all available units are staked, the yearly inflation rate is at roughly 5%. We also have a dual blockchain system (NAV Tech) for sending private NAV payments. It works by encrypting information and sending it through the second layer blockchain, which in turn cuts all connection between sender and receiver.
Privacy
Building upon its base, future implementations which we can expect to see include a static block reward for increased network security. In addition, an embedding of a Lightning Network is also planned, to allow for instant, cross chain payments and atomic swaps. Currently, in beta testing, cold staking is underway and further detailing of the management of the community fund.
In any case, NavCoin has a bright future ahead, all while maintaining and improving upon its long history on the crypto market.
Useful Weblinks
- Official Website: https://navcoin.org
- Announcement Page: https://navcoin.org/notices
- GitHub: https://github.com/NAVCoin
- Block Explorer: https://chainz.cryptoid.info/nav
- Roadmap: https://navhub.org/roadmap
- Socials:
- Twitter Discord Telegram Reddit/Subreddit