Tokenomics
Navigate aims to accelerate app innovation by aligning the incentives of data consumers and providers. In pursuit of this vision, we are introducing the NVG8 token. NVG8 will be an ERC-20 token used to bootstrap network effects, facilitate governance, and access products and services across the Navigate ecosystem.

NVG8’s Core Features:

Ecosystem Incentives: NVG8 will be issued to users who contribute data to the Navigate Marketplace, including Navigate Data Vaults. Share data, earn NVG8. It’s as easy as that!
On-Chain Governance: Our goal is to progressively decentralize control of the Navigate Platform. We want the community to be in the driver’s seat and NVG8 is an essential component to this vision. NVG8 gives the community a voice in how their data is used and how rewards are distributed.
Ecosystem Access: NVG8 will be the medium of exchange across the Navigate Platform. Developers can use NVG8 to access vaults, and consumers can use NVG8 to access native dapps (e.g., Navigate Maps) built on the platform.

NVG8 Allocation and Release Schedule

One billion NVG8 tokens will be minted at genesis and vest over the course of 7 years. The initial allocation is as follows:
Stakeholder
Vesting Schedule
2% Public Sale
20M tokens reserved for a public sale
12% User Rewards
120M tokens reserved for contributors
10% Advisors and Partners
82.5M to advisors; 25% vest after a 12-month lockup, then 1/48 of allocation vest per month for 36 months. 10M can be acquired by advisors within 12 months of token minting date; vest immediately
7.5M reserved for future partner/advisors; currently unallocated
10% Navigate Team
100M to the team; vest linearly over 36 months following 12-month lockup
12.7% Presale
127M to early backers; 25% vest after a 12-month lockup, then 2.6M vest per month for 36 months
53.3% Navigate Foundation
14% to vest at launch, with 7.7M unlocked each month for 59 months
53.3% of the total supply has been reserved for the Navigate Foundation. As these tokens vest, they can be used to grow the ecosystem through grants, community initiatives, user rewards, liquidity provisioning, and other programs. It’s worth noting that these tokens do not have to be spent once vested. They will only be used when the foundation sees constructive opportunities offering meaningful growth. As a result, only a portion of these tokens will enter the circulating supply in the near- to mid-term.

Tokenomics Phase 1

User Rewards:

120M NVG8 tokens have been reserved for users who contribute data to Navigate Vaults. For a short period of time following the launch of the Aerial Imagery Data Vault (Navigate’s initial vault), NVG8 rewards will be non-transferable. Meaning you will temporarily be unable to trade or stake NVG8 tokens. This is primarily to reduce speculation as we launch our first few vaults and ship the beta version of Navigate Maps this year. NVG8 will become transferable following our initial token offering.
Note: Specific details (weightings, figures, and functions) in the below section will be periodically adjusted by the foundation and communicated publicly to optimize incentives and preserve economic sustainability.

User Rewards Formula:

When you contribute data to a vault, your reward will be based on the following formula:
userRewards = vaultRewardFunction* rewardsGauge
where:
vaultRewardFunction = output of a specific vault rewards function
rewardsGauge= vault agnostic modifier that increases/decreases vault rewards
Let’s break down each component.

The Vault Reward Function (VRF):

Each vault will have a unique function that incentivizes users to contribute high-value data; we call these “Vault Reward Functions”, or “VRFs”. Our first vault, which collects drone imagery, incentivizes the collection of highly populated areas with the following VRF:
vaultRewardFunction= ((imageAccepted * popDensity) + ... + (imageAccepted * popDensity)n) * aerialScalingFactor
where:
n = number of images
popDensity = population density multiplier
imageAccepted = true if image was accepted, false otherwise (bool)
aerialScalingFactor= a multiplier that ensures vault rewards remain competitive
Let’s walk through the above formula step by step.
When you contribute imagery to the Aerial Imagery Data Vault, the VRF will first check if the image was approved. Then, the VRF will calculate the population density of the captured area using the image’s metadata and assign a modifier from the following table:
Population Density Tiers
Population per Sq. Km.
Modifier
1
Under 100
0.5x
2
100 to 1,000
0.75x
3
1,000 to 2,500
1.00x
4
2,500 to 5,000
1.50x
5
Over 5,000
2.00x
As you’ll notice from the table, contributors earn more NVG8 tokens for mapping highly populated areas. This is to encourage users to capture locations that are constantly changing and highly trafficked, or what can be considered high-value locations. Shortly after alpha release, we will introduce two additional variables to the aerial VRF to incentivize fresh (i.e., recent) and high-quality (e.g., high definition, sunny, clear, ec.) imagery.
As an example, imagine you uploaded five pictures of Midtown Manhattan, New York. If your images were accepted, you would receive a 2.00x multiplier, as that area has a population per square kilometer that is over 5,000.
Following this step, we multiply the population density modifier by a scaling factor (currently 1.00x) to arrive at the vault reward (10 NVG8). Scaling factors are unique to each vault function and ensure we are issuing a fair number of tokens based on the effort required and nature of data collected. Capturing drone data is arguably more difficult than capturing dashcam data, and the scaling factor is how we adjust for this asymmetry when issuing rewards.

The Rewards Gauge

Note: The gauge that is outlined below will go into effect shortly after we launch the aerial imagery vault. A simplified version of this gauge, set to 1 and managed by the Foundation, will be used in the interim.
Once we have an output from the VRF, we can multiply it by the rewards gauge. The gauge is a modifier that moves up or down depending on how many NVG8 tokens we have in the user reward pool. The gauge makes sure we spend the right amount of tokens based on how many tokens we have available. With more tokens available, we can afford more attractive awards and vice versa. The gauge manages this logic automatically, adjusting our “budget” dynamically.
The gauge also ensures that:
  • Early contributors receive more than late adopters
  • User rewards increase as platform revenue increases
  • We distribute rewards in a sustainable, transparent, and programmatic way
This gauge allows us to manage the NVG8 token supply while defining unique reward functions by vault. This is particularly important, because we want Navigate to be a destination for any data type. And while different data types will require unique VRFs, all VRFs should follow a consistent distribution curve.
We plan on releasing additional details on the gauge following the launch of our aerial imagery vault. More to come!

Calculating Total User Rewards:

Continuing with our example –
When we uploaded pictures of Midtown Manhattan, the aerial imagery VRF generated 10 NVG8 tokens. Let's say, for the sake of this example, that our reward gauge is set to a value of 1.23x.
At this point, we have what we need to calculate total user rewards:
userRewards = vaultRewardFunction* rewardsGauge
12.3 NVG8 = 10 NVG8 * 1.23x
We received 12.3 NVG8 tokens for our images of Midtown Manhattan! As a recap, user rewards are the product of two components: VRFs and the rewards gauge. VRFs are vault specific while the rewards gauge is platform-wide and constant across vaults. Both contribute to total user rewards and both will continue to evolve as we seek feedback from the community and course correct on the best framework.
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NVG8’s Core Features:
NVG8 Allocation and Release Schedule
Navigate Foundation:
Tokenomics Phase 1