Boston, December 2019 — ndau, the world’s first buoyant virtual currency, represents a new type of virtual currency that provides an optimized solution for long-term store of value. ndau addresses key issues of inflation and volatility, as an alternative to unstabilized cryptocurrencies and traditional stores of value, such as fiat currencies.
Freedom from banks and financial security is often hard to come by in the fluctuating world of finance and investment. Banking and commission fees keep customers trapped in the centralized banking system, and the crypto rise of 2017 showed the potential of decentralized, “de-banked” assets. But the near collapse that occurred months later demonstrated that the absence of monetary policy merely emulated the problem of market volatility. While many stablecoins have addressed the volatility problem by “pegging” to an underlying fiat reserve, the consequences is that they are inherently deflationary and unable to capture value with increasing demand, for the long haul. The balance between stability, independence, and long-term store of value was missing.
In 2016, a group of over 20 leading finance experts from world-class institutions－including Goldman Sachs, Columbia University, Carnegie Mellon, among others－came together to find the best way to solve these problems. The answer was in building a blockchain that reacts to market changes in real time, guided by monetary policy, digital governance, and consumer dependability. ndau’s unique application of monetary policy, known as “buoyancy”, solves the problems of market volatility and the difficulty of holding secure digital assets for the long term, through a number of policy initiatives and mechanisms:
- Demand-driven supply: New ndau is issued along pre-determined price curve only when demand exceeds supply and pushes market price to the next designated price level.
- Incentives to hold: Efficient proof-of-stake consensus with ecosystem incentives that increase the longer ndau is held and locked.
- Non-profit endowment: All net proceeds are held in an endowment, maintained by the non-profit Axiom Foundation, to help stabilize ndau and implement its monetary policy.
- Resilient governance: Governed by the Blockchain Policy Council (BPC), with regularly elected delegates, by ndau holders, that oversee operations and ndau’s monetary policy.
- Robust security: Includes a multisignature wallet, recovery safeguards, dispute resolution and property rights.
“We see the purpose and future of cryptocurrency with more stability than coins that preceded us, while maintaining the decentralized elements that users cherish,” says Ken Lang, Managing Partner and CTO of COSIMO Ventures and member of ndau Collective. “ndau creates an economy where users can store their digital assets for long time horizons, secure their financial future while offering an opportunity for those who want to buy assets outside of the traditional financial instruments.”
The Axiom Foundation, an Isle of Man entity, contracted Oneiro in 2016 to build ndau, starting with $8 million in venture capital provided by COSIMO Ventures. Following its launch, ndau holders elected the inaugural BPC in May 2019, and voted to be listed on the BitMart exchange. At the time of the listing, nearly $17 million in ndau has been sold through private sales based on the merits and principles of the project, without pursuing an ICO or IEO. As of November 15th 2019, $74 million worth of ndau are outstanding.