3–2–1-take off! Countdown to launching Nym Mainnet
The year 2021 is coming to a close, and as promised we have built every component of the Nym mainnet. Now, we just need to deploy them all…
The year 2021 is coming to a close, and as promised we have built every component of the Nym mainnet. Now, we just need to deploy them all in the first quarter of the new year!
What does a launch of a global privacy mainnet look like in practice? The different components of the Nym Mainnet must be deployed in a staged process for the infrastructure to work — with the final stage being the fully functional network launch.
In this blogpost we explain each component that will be deployed in a countdown taking place in three stages, culminating in a fully functioning Nym mainnet and token launch so people can pledge and run mix nodes, as well as access the Nym mixnet.
“Three” — Deploy the blockchain
Where Tor uses directory authorities to keep track of nodes, Nym uses a public blockchain, currently based on Cosmos, to keep track of the reputation of every mix node in terms of NYM tokens. The blockchain also runs the Nym mixnet smart contracts needed to reward the nodes, and all NYM token transactions by users. It is therefore the first thing to be deployed.
However, just one validator running on a machine is not truly a mainnet blockchain until the chain has been decentralised! The on-boarding of existing Nym validators will therefore begin immediately. Nym Technologies will not run any validators, effectively handing the reins over to the community. Software upgrades to Nym will require consensus of the validators, although it will be up to individual mix nodes to choose whether or not to run software.
Nym validators operate as the consensus backbone of the network by maintaining the blockchain. Validators are initially a permissioned set with “skin in the game”: pre-launch backers that have invested hard cash into Nym, and therefore have an interest in ensuring the success of the project and a smoothly functioning system. The validator set also includes a number of community validators, run by people who have been contributing to the testnets and have shown both exceptional skill and dedication to making Nym a reality.
While it would be conceivable for the initial set of validators to collude and gain ‘control’ of 66+1% of the total stake (the floor for consensus), it wouldn’t economically make sense as it would threaten the success of the project and undermine their efforts. Importantly, this initial set of validators are geographically distributed across countries and regions, which is essential for the security of the infrastructure. New validators will be able to join via pledging NYM Tokens.
“Two” — Upload the smart contracts
With the blockchain up and running, the next step to mainnet is to upload three smart contracts that are essential for a functioning mixnet: the main Mixnet Contract, the Vesting Contract, and the Bandwidth Credentials Contract.
These contracts are currently undergoing a security audit, which is why we aren’t just launching the network at the end of 2021 — we at Nym value the privacy and security of our users.
The mixnet contract runs the Nym mixnet tokenomics, as described in section 6 of the Nym Whitepaper. It is the contract that controls the mix node reward scheme, and is therefore the main contract that keeps the mixnet providing high quality service to users.
The vesting contract, which sends tokens that are generated to token purchasers. This contract is temporary, only lasting until all generated NYM tokens have been released. The exceptional (and exciting!) aspect of this contract is that it allows for unvested tokens to be usable for pledging and delegating to mix nodes during the lockup period. What this means in practice is that these tokens can immediately serve the privacy infrastructure and those running it, by allowing people to run nodes, delegate NYM tokens and earn rewards in NYM.
The Bandwidth Credentials contract enables the generation and purchase of bandwidth credentials using NYM as payment. Although bandwidth credentials can be customized by service providers, the most elementary kind of bandwidth credentials are called Basic Bandwidth Credentials (BBC) and just give access to the mixnet. These credentials are presented to Gateways by a Nym Client, and represent a certain amount of bandwidth which can be sent through the Nym Mixnet. By default 1 NYM = 1 GB of bandwidth but it will dynamically adjust over time.
“One” — Distribute NYM tokens
The final stage in the count-down is to distribute the mainnet tokens so that people can finally start running and using the Nym mainnet!
Under Swiss law, NYMs are utility tokens that serve to provide access, ascertain reputation and reward work in the mixnet. NYM tokens allow people to
- Spend NYM to use the mixnet to protect the privacy of your communications. Since end-users should not have to know or interact with the Nym blockchain directly, this functionality will be supported by a few different blockchains.
- Pledge NYM to run a mixnode and be rewarded. This will require native NYM tokens on the Nym chain.
- Delegate NYM tokens as stake to mix nodes that are doing a good job of mixing traffic. If you do not have the technical expertise or capacity to run a node yourself, you can still participate by delegating to good mix nodes and earn a share of rewards. This will also require native NYM tokens on the Nym chain.
NYM tokens are distributed to three groups initially: First, they will be distributed to company employees and supporters through legal agreements. These supporters include industry heavy-weights, ranging from Binance to a16zcrypto, providing the project the stability, resources and geographical distribution to ensure the longevity of the system. Second, NYM tokens will be sent as rewards to node runners who have been helping us with our testnet this past year. Details will be sent out soon. Third, NYM tokens will be available to the general public through a public offering (soon to be announced and with a prospectus) allowing anyone to buy NYMs and begin using, running and delegating to the infrastructure. In the future, people will be able to acquire NYM tokens directly in the Nym wallet.
Nym Mainnet Take off!
And take-off! The Nym mainnet will be up and running from day one: people will be able to use NYM tokens to pay fees to access the mixnet, pledge NYM to run nodes, and delegate NYM to mix nodes.
Those familiar with token offerings will know that tokens are unvested for a period after the sale before they are released. What is exceptional in our case is that those who purchase native NYMs (on the Cosmos-based Nym chain) will immediately be able to make use of those tokens to run or delegate to the network and earn rewards, even though the tokens will not yet be available on the open markets until the end of the vesting.
At this point, the Nym mainnet will be up and running! From there, we can all begin building, and the expansion of this global privacy ecosystem can commence.
