Frequently Asked Questions

What could you say about Novacoin emission model?

Novacoin (NVC) is among the earliest digital currencies that successfully deployed hybrid proof-of-work (PoW) and proof-of-stake (PoS) paradigm. The hashing algorithm is Scrypt, similar to Litecoin. Initially, block reward was set at 100 NVC, with gradual downward adjustment over time. The maximum supply of Novacoin is technically not limited (e.g., there is no "hard cap"). However, due to dynamic adjustments in difficulty, it is unlikely that such a quantity will be achieved for decades (if not centuries). This, in turn, ensures scarcity of new NVC supply.

For those interested in more details, block reward can be calculated using the formula:

nBlockReward = 100 * (0.03125 / difficulty) ^ (1/3).

What is a “staking”?

Proof-of-Stake (PoS) refers to the use of currency itself (e.g., your ownership of Novacoin) to achieve certain pre-defined goals. In Novacoin network, PoS is used to provide minting and transaction processing alongside the PoW capability to do the same. This provides an important redundancy and increases overall blockchain security. The ‘stake’ field in the ‘getinfo’ output shows the currency amount you are currently ‘staking’ to help protect and stabilize the Novacoin network. This amount is subject to the holding period of 520-block maturity window before you can use it again (e.g., it returns to your balance once matured). Because at the “network-level” there will be multiple active participants who “stake” their coins, a significant number of coins (e.g., collateral) will be present on deposit (and thus not free to move). This, in turn, stabilizes the network and protects it from malignant, third-party actors by making attacks costly, impractical, and in effect self-destructive.

How soon after acquiring Novacoins will I get my first stake?

After 30 days the network would start seeing your PoS blocks. With sufficient balance – usually 100 or more Novacoins – your wallet will automatically try to generate a stake for you. Once you find a stake, the reward is calculated using current PoS difficulty and coin-years, both of which are dynamically adjusted. The reward amount is added to your stake amount and is shown together in the ‘stake’ field of “getinfo” output. Because stake is withheld from spending for 520 blocks, if you do need to keep your balance around to be spent sooner, there is a special configuration option ‘reservebalance’ to help you keep your balance from being used by stake. You can add a line ‘reservebalance=10000′ to novacoin.conf and restart your novacoind (e.g., your NVC daemon). This way novacoind would try to keep your balance above 10,000 coins when generating stakes.

How is Novacoin energy efficient?

The enhanced energy efficiency of Novacoin refers primarily to the long-term benefits of PoS (and more recently multi-platform tokenization or MPT). This is because Novacoin is not dependent on the use of energy-hungry PoW coin generation, thus reducing the overall network energy consumption. At the same time, PoW is the most practical way of supporting the early phase of minting of a cryptocurrency like Novacoin. Because of this, the original developer team decided to keep PoW as part of Novacoin’s hybrid design. To help optimize energy efficiency, we abandoned the all-to-prevalent and wasteful SHA256 algorithm and replaced it with a much more eco-friendly Scrypt algorithm. In our gradual transition toward decentralized finance (DeFi) the innovative approach of multi-platform tokenization (MPT) further reduces Novacoin’s dependency on energy-hungry ‘mining rigs’ while allowing faster, more efficient transactions and seamless ways of ‘swapping’ assets.

How does proof-of-stake protect the network?

In addition to the Scrypt-algorithm PoW coin generation utilized by Novacoin, additional security comes from the Network’s incorporation of the PoS paradigm. Although there exists a possibility that a hashing algorithm or another component of the network may be vulnerable to a 51% attack, the number of “moving parts” within Novacoin’s ecosystem makes it highly unlikely that a successful attack could be carried out. Morever, due to the large amount of coins required to effectively “attack” the network using PoS, it would be impractical for a dishonest player to proceed with such a plan.

How can I acquire Novacoins?

There are three main ways of acquiring Novacoin (NVC): [1] Purchase with fiat currency using a specialized vendor, such as BexCrypto [2] Exchanging other cryptocurrencies for DGC on platforms such as FreiExchange , FreiXLite , XeggeX or Komodo Wallet and [3] Selling goods or services for DGC, using platforms such as the EWMCI Shop .

Where can I store my Novacoins?

There are several ways of securely storing Novacoin (NVC): [1] Our desktop Qt wallet [Link #1] [Link #2] [2] The state-of-the-art Komodo Wallet and [3] The Gemmer Wallet by Primecoin , and [4] Wally.ID multi-wallet . In addition, we are working on our own, native EWMCI wallet platform called CoinMunityWallet. Additional resources and links can be found on the EWMCI Resources Page .

For users of our multi-platform tokenization (MPT) ecosystem, the following wallets can be used: [1] Komodo Wallet [2] Trust Wallet and [3] SafePal Wallet . The introduction of MPT also enables users of compatible wallets to participate in advanced swap platforms, such as the Pancake Swap .

Why did you choose multi-platform tokenization (MPT)?

Multi-platform tokenization was chosen as our strategy for several reasons. Most importantly, the original codebase would require massive upgrades, many of which would effectively negate the original intent of the NVC hybrid PoW / PoS coin generation protocol. Thus, upgrading the coin would mean that various highly unique features of the original Novacoin would be lost forever. In addition, modern decentralized finance (DeFi) platforms are mostly incompatible with UTXO-based cryptocurrencies like NVC. Consequently, the most optimal approach to allowing our users to enjoy DeFi while preserving both the value and the relevance of NVC was to embrace 1:1, non-inflationary tokenization. Our intent is not to dispute, or depart from, the essential nature of the UTXO origins of Novacoin. To the contrary, the critical importance of the original codebase and NVC blockchain is fully preserved because it remains the ONLY way to generate new Novacoins! Finally, why “multi-platform” tokenization? Well, various platforms enjoy different levels of success, and dependence of a single platform would potentially expose NVC to becoming marginalized if that particular tokenization platform did not gain sufficient popularity. Thus, “multi-platform” provides the best odds of NVC surviving and thriving well into the future!