To the Nebulas community,

This past year has seen many achievements by the Nebulas team and community alike which has included the exploration in the process of on-chain governance and the Nebulas Autonomous Token (NAT) which was created to foster new ideas and innovations in this field. It is, however, clear to us now that NAT has limitations that were not immediately visible during its development and its time to move forward!

The Nebulas team continues to listen to our global community and we hear you requesting the expanded governance options via the NAX token. With this in mind, Nebulabs is proposing a solution to move forward and to compensate those with NAT by issuing 10 million NAX in exchange for their NAT token.

The History of NAT

May 13th, 2019: NAT distribution was initiated to the community with three possible methods of obtaining NAT:

1. Centralized pledging of NAS to receive NAT.

2. Receive NAT by improving the Nebulas Rank (NR) score of an address.

3. Receive NAT by participating with Nebulas on-chain voting.

May 18th, 2019: On-chain voting with NAT launched. A total of 9 projects were voted for via the NAT token (nebulas.io/nat-vote.html). In total, there 2,382 votes and 426 addresses have participated in on-chain voting.

July 3rd, 2019: Obtaining NAT via NR was terminated due to manipulation via bots which continuously transferred funds between one-another leading to potentially unfair voting.

July 8th, 2019: Voting for “Adjustment to the ratio of NAT voting refund” took place and the community chose that voted NAT obtained through staking NAS should be burnt immediately without refund. As a result, any voted NAT would not receive additional rewards.

Distribution of NAT (as of Oct 17th, 2019)

Total Supply: 100,000,000,000 NAT

Minted NAT: 9,341,041,507 NAT

Distribution via Centralized Pledging NAS: 5,843,751,006 NAT （63%）

Distribution via NR Score: 2,380,564,383 NAT （25%）

Distribution via Nebulas On-Chain Voting: 1,116,726,117.80237 NAT （12%）

Currently Staked NAS: 466,889 NAS

Details of NAT: https://explorer.nebulas.io/#/token/n1mpgNi6KKdSzr7i5Ma7JsG5yPY9knf9He7

What’s Next

On September 11th, 2019, the smart assets platform nextDAO (nextdao.io) released decentralized staking (dStaking) which gives NAS holders the ability to stake their NAS via their own, personal addresses eliminating the need for a centralized pledging address. In addition, for each dStaking period (approximately 1 day) completed, the address holder is entitled to NAX distribution according to the amount and the duration of the pledged NAS.

NAX is a true reflection of the devotion of community members holding NAS. Compared to other staking options, dStaking is far more secure and reliable thus protecting valuable crypto-asset and avoiding the possibility of suffering big loss from theft. So far, 25,714,540 NAS has been dStaked with a global rate reaching 46.67% — which also shows the community’s support of NAX.

On September 29th, the Nebulas community launched NAX voting. The participation method of voting via NAX exemplified a completely different way of on-chain voting vs NAT. Those with the most amount of NAS no longer dominated the voting results.

We have deep gratitude and thanks to the community members who have enthusiastically devoted their time and energy to the development of Nebulas and participated in the governance of the Nebulas community.

Nebulabs is proposing a solution to move forward and to compensate those with NAT by issuing 10 million NAX in exchange for their NAT token (NIP: 151).

Voting Time:

Begins: October 21st, 2019 at 3:00 p.m. (UTC+8/Beijing Time)

Ends: October 28th, 2019 at 3:00 p.m. (UTC+8/Beijing Time)

Voting Rules:

Voting will take place on the Nebulas.io website. Upon voting, select your preferred option, scan the QR code via NAS nano Pro and initiate NAX transfer. For more details about the voting process, please review the NAX vote tutorial.

There is no limit to the amount of NAX a user may cast

All NAX used for voting will be returned to the voters address approximately two days after the 30th dStaking period of the completion of the vote (e.g. 31–33 days/periods)

NAT Solution Proposal

Asset under evaluation: All minted NAT

Exchange quantity: 10 million NAX for all collected NAT

Notes: The 10 million NAX for the exchange process will be obtained from the NAX Ecosystem Fund Pool. According to NAX Whitepaper (2019), 5% of all distributed NAX for each dStaking period (approximately 1 day) shall be collected and placed into the NAX Ecosystem Fund Pool. This fund is entrusted to Nebulabs and will publish its valuation regularly. The purpose of this fund is for increasing the influence of NAX, exploring application scenarios and serving the Nebulas ecosystem.

Exchange Procedure:

1. Collecting NAT: Each NAT holder may transfer NAT to the Burning Contract (to be published) used for burning NAT.

2. Issuing NAX: Once the NAX Ecosystem Fund Pool meets 10 million NAX, the fund shall be distributed to the addresses participating in the collection of NAT. The issuance will take place approximately within 30 dStaking periods upon completion of voting for the NAT Solution Proposal.

3. NAT Collection Time：

Begins: November 4th, 2019 at 3:00 p.m. (UTC+8/ Beijing time）

Ends: November 11th, 2019 at 3:00 p.m. (UTC+8/ Beijing time）

4. Distribution Proportion: All addresses participating in the collection of NAT shall be entitled to a proportional distribution of the 10 million NAX.

Example of issuance distribution:

If 3,000,000,000 NAT are collected and a user transfers 10 million NAT to Burning Contract prior to November 11th, 2019, this user will be entitled to 0.33% of the issuance sum of 10 million NAX; as a result, this user would be entitled to 33,333.33 NAX.

Notes：

1. Upon approval of this proposal, the pledging of NAS to obtain NAT shall be terminated and all the currently pledged NAS will be refunded to their corresponding addresses.

2. NAT which fails to be transferred to the to-be published Burn Smart Contract address by November 11th, 2019 (UTC+8）shall not be entitled to exchange at a later date.

Disclaimer

1. Please only refer to Nebulabs for official announcements about NAT.

2. Nebulas does not assume any responsibility for the loss of assets due to personal operations. Please be diligent to identify and avoid fake applications, falsified messages, phishing websites, phishing emails, fake customer service, scams, etc… The Nebulas team will never ask users for their private keys. Nebulas is not responsible for any loss caused by users or third parties.