Blocks and block rate

All ndau transaction data are permanently recorded in files called blocks, and blocks are organized into a linear sequence over time known as the ndau blockchain. You can view this activity live by visiting the ndau blockchain explorer.

The block rate is the rate at which blocks are added to the ndau blockchain.

If one or more transactions are available on the ndau network, a new block containing all available transactions will immediately be created and added to the blockchain.

If no transactions are available on the ndau network, a new block will be created every 5 minutes. This is why you will see blocks with “no transactions” on the blockchain (example).


The amount of ndau in a user’s ndau wallet that is available to be immediately sent to another ndau account. This value does not include ndau that is temporarily unspendable because of account locking or a pending recourse period.

The Endowment

The Endowment (from which “ndau” is named) is a not-for-profit entity that serves as a mechanism by which the BPC can enact monetary policy and stabilize the currency itself.

The purpose of the Endowment is to hold the net proceeds from the release of reserve ndau and to use both to provide liquidity to the market by way of the Market Maker. This is in contrast to most major cryptocurrencies that don’t have either an endowment equivalent or other means to facilitate equilibrium between demand and supply as a means of helping mitigate downside volatility. The Endowment invests the net proceeds of its holdings according to rules and limits set forth by the BPC. These rules and limits best suit the long-term risk and return policy objectives of the BPC across the spectrum of possible investment environments in order to support a balance of growth and long-term market liquidity.

The Endowment is carefully managed, especially under stress scenarios, to ensure that it can provide liquidity within a set of reasonably staggered time periods. Assets in the Endowment do not “back” ndau and holders of ndau are in no way invested in the Endowment. The Endowment is available solely to the Market Maker for the purpose of providing liquidity to the market through the purchase and sale of ndau and therefore to manage monetary policy.

Market maker

The Market Maker has the authority to release new ndau from the reserve and to permanently remove ndau from circulation. It is contractually obligated to take these actions as directed by BPC monetary policy.

When ndau demand rises beyond the limit of what’s available in the market below the current Target Price, the Market Maker sells new ndau into the market at that Target Price, which increments higher every 1,000 ndau sold from the reserve. The net proceeds of those sales then flow to the Endowment as discussed above. Conversely, when the ndau Market Price falls to the Floor Price (as defined below), the Market Maker buys ndau through purchase orders it has placed at the Floor Price (subject to practical rates of liquidity) and permanently removes the repurchased ndau from circulation.

The Market Maker also acts as a liquidity provider for ndau and aims to maintain stability and liquidity through its ability to buy and sell currency according to the rules prescribed by the BPC. It stands ready to buy and sell ndau on a continual basis at prices specified by pre-established and transparent rules, subject to practical volume per unit time limitations.

Stabilization Incentive Burn (SIB)

The Stabilization Incentive Burn (SIB) is a mechanism to stabilize and support the market price of ndau. When in effect it is imposed as an additional fee when ndau are transferred from one account to another. Based on observed transactions, a current Market Price is regularly published to the ndau network. If the Market Price of ndau drops below 95% of the current Target Price, the SIB fee is imposed on all transfers. If the Market Price is 95% of the Target Price, the SIB fee is 0%. It increases linearly until it reaches 50% if the Market Price equals the Floor Price. To reduce the supply of ndau and support the Market Price, ndau paid as SIB fees are removed permanently from circulation (“burned”).

Similar to other digital currencies, all ndau transactions are subject to a small fee that supports the operation of the ndau network. ndau, however, has an additional, unique feature known as the Stabilization Incentive Burn (SIB) system to mitigate downward volatility. When the Market Price of ndau drops to 5 percent below the Target Price, the SIB activates. The SIB is a fee that is applied on top of normal transaction fees. The SIB rate progressively increases as the Market Price approaches the Floor Price, and the ndau collected through the SIB fee are permanently removed from circulation.

The SIB begins at 0 percent when the Market Price drops to 5 percent below the Target Price and climbs to 50 percent as the Market Price approaches the Floor Price. The SIB reduces the incentive to sell during down market conditions because the cost to do so grows higher the more the market declines

Individual incentives created by the SIB and the aggregate, cumulative effects of removing ndau from circulation serve as stabilizers for ndau. This mechanism functions as a spring that gets stronger in pushing the Market Price back up toward the Target Price; the more the Market Price diverges from the Target Price, the more buoyant the Market Price becomes. The cumulative restorative effect due to a rebalancing of supply and demand also gets stronger the longer that divergence continues.

Reserve ndau

ndau that has never been publicly traded and that does not hold any market value until it is sold on the open market by the Market Maker.

EAI Service Fees

Certain service fees are deducted from EAI. The fees collected are used to fund the continuous growth and operation of the ndau ecosystem.

4 percent Ecosystem Funding

All EAI is charged a 4 percent fee to help grow the ndau ecosystem by funding functions such as software development and marketing.

1 percent Market Maker Price Discovery

All EAI is charged a 1 percent fee to fund the Market Maker’s operations.

Additional Fees

Certain fees are only charged in conjunction with a service or particular circumstance.

10 percent Network Operations: EAI incentives are available only to those holders supporting the ndau ecosystem by operating or associating with an ndau network node. Many currency holders will not want to operate their own node and will instead choose to associate with another node operator. A fee of 10 percent of EAI is charged to such holders to cover node operating costs.

5 percent exchange for other services: The BPC may elect to initiate an automatic exchange of up to 5 percent of EAI into other kinds of tokens, still under control of the holder, used for various non-currency services offered within the ndau ecosystem (“side chain services”). These services may include, but are not limited to, identity, dispute resolution, and secure communications.

(Note: this KB article also exists on our Support Portal – Economic Alignment Incentives – Information for Support)

EAI Rate Schedule

EAI is accrued according to an EAI Rate Schedule published by the BPC, and the rate at which EAI is accrued by an account is based on its WAA.

ndau held for longer than 30 days may accrue an incentive of ndau at a rate of 2 percent on an annualized basis. As ndau is held longer, this rate increases in 1 percent increments each additional month up to 10 percent when held for 9 months. The chart below shows the EAI structure.

Further, holders can take advantage of the ndau equivalent of a certificate of deposit, holding ndau over a specified period of time to accrue a predetermined rate of additional awarded incentive. In the ndau ecosystem, this is called “locking ndau.” By locking, the holder accrues ndau at a higher rate. Locking ndau for 90 days adds an additional 1 percent to the EAI rate above the incentive structure, as shown in the chart below.

Further increases occur at 6, 12, and 24 months of locking ndau until at 36 months a maximum of an additional 5 percent annualized rate is earned.

Locked ndau immediately begins to accrue EAI at the rate it would be accruing if it had already been held for the lock period, plus the lock incentive. Receiving and immediately locking ndau for 90 days thus immediately begins accruing a 4 percent EAI: 3 percent as if it had already been held for 90 days plus a 1 percent lock incentive. Likewise, ndau purchased and immediately locked for 3 years accrues a 15 percent EAI: the 10 percent rate as if it had already been held for that period plus the 5 percent lock incentive.

It is important to note that EAI is not an automatic entitlement. Further requirements on the ndau holder may be set or modified by the BPC over time in order for the holder to permanently earn the accrued EAI. These additional requirements are to align individual incentives with the objectives of the entire ecosystem and all of the participants therein.

(Note: this KB article also exists on our Support Portal – Economic Alignment Incentives – Information for Support)

Weighted Average Age (WAA)

Weighted Average Age (WAA) is the average age of all the ndau in a specific account. WAA is displayed in years/months/days, with 1 month always equal to 30 days.

When you hold ndau in an account in your ndau wallet, it is always earning EAI. And in order to calculate exactly how much EAI your ndau is earning over time, the blockchain needs to know how long you’ve been holding your ndau.

Since the amount of ndau in an account can change over time as you send or receive ndau, the blockchain needs to calculate a weighted average. And the period of time that is calculated (specified in years/months/days) is called the Weighted Average Age (WAA) for that specific account.

Here’s an example of it in action:

  • Susan deposits 50 ndau in an account, waits 1 year and then checks the WAA on the account.
    • The WAA for her account containing 50 ndau is “1 year.”
  • Susan then decides to deposit another 50 ndau in the account and immediately checks the WAA again.
    • The WAA for her account containing 100 ndau is now “6 months.”

EAI is a powerful and simple way to increase your ndau holdings, and the higher your WAA, the more EAI you can earn. But remember, you can’t earn EAI if your ndau are sitting on an exchange. Always be sure to withdraw your ndau to an account on your ndau wallet so you can start earning EAI as soon as possible.

FAQ about the ndau wallet and your recovery phrase.

What do I do if I lose my ndau wallet password? 

If you lose your ndau wallet password, then you won’t be able to log into your ndau wallet.  Oneiro does not store your wallet password for security reasons.  But don’t worry, as you can completely recover your wallet using your recovery phrase.  Your recovery phrase is the 12 word phrase your wrote down during the initial wallet set-up.

What do I do if I accidentally delete or lose my ndau wallet?

If you delete or lose your ndau wallet, you can recover it using your recovery phrase.  Reinstall the ndau wallet and click the “recover a wallet” button.  Enter your recovery phrase and your ndau wallet will be restored.

How can I check to make sure I wrote down my recovery phrase correctly?

Log in to your ndau wallet and select the option to change your wallet password.  The wallet will then ask you to enter your recovery phrase to verify you. This will let you check to make sure you have written down the correct recovery phrase.

What if I lose my recovery phrase, but I can still log on to my ndau wallet using the wallet password? 

During the initial ndau wallet setup, you were required to write down your recovery phrase and to save it in a secure place.  If you cannot find your recovery phrase but can still log in to your ndau wallet, we recommend you immediately create a new ndau wallet on a new mobile device and send your ndau from your existing wallet with the lost recovery phrase to the new wallet.  Be sure to write down and save the new recovery phrase for the new wallet.

What if I lose both my recovery phrase and my wallet password? 

Oneiro does not store your wallet password or recovery phrase for security reasons. You will always be able to recover your ndau if you have saved your recovery phrase.  Your recovery phrase is your ndau.  If you lose your recovery phrase and also cannot log in to your ndau wallet because you lost the wallet password, then you have lost all the ndau in that wallet forever.

What if someone steals my recovery phrase?  Will they be able to access my ndau?

Yes.  Your recovery phrase is your ndau.  Whoever has your recovery phrase has full access to all your ndau and can recover your ndau wallet on their own mobile device.  We recommend you store your recovery phrase very securely  (e.g., written down in a safety deposit box).

What if the owner of the ndau dies? 

We recommend keeping a backup of your recovery phrase with your lawyer. This way your lawyer can give the recovery phrase to the proper person as with any estate planning. 

Can I protect my ndau with multisig? 

Yes. This feature will be added to the ndau wallet in the future. 

(Note: this KB article also exists on our Support Portal.)