What is Namada?

Namada is a Proof-of-Stake (PoS) Layer 1 blockchain designed to provide multichain, asset-agnostic data protection. Utilizing CometBFT consensus, it enables multi-asset shielded transfers for both native and non-native assets, ensuring user privacy across various blockchain networks. Namada features full Inter-Blockchain Communication (IBC) protocol support, facilitating seamless interoperability within the Cosmos ecosystem and beyond. Its modern PoS system incorporates cubic slashing to enhance network security and employs a stake-weighted on-chain governance mechanism, allowing token holders to participate in protocol decisions.

The platform introduces a Multi-Asset Shielded Pool (MASP), rewarding users with native protocol tokens for contributing to the shielded set, thereby strengthening privacy guarantees. Namada's architecture supports shielded actions for cross-chain decentralized finance (DeFi), enabling confidential interactions with transparent blockchains and applications. By consolidating assets into a unified shielded set, Namada allows users to hold and transact a range of assets, including NFTs, with full control over shared information.

Namada has a native token called NAM, which serves multiple purposes within the ecosystem. The NAM token is used for staking in the Proof-of-Stake (PoS) consensus, enabling token holders to participate in securing the network and earning rewards. Additionally, NAM facilitates on-chain governance, allowing holders to propose and vote on protocol changes, upgrades, and policy decisions. The token also plays a vital role in incentivizing privacy contributions through Namada's Multi-Asset Shielded Pool (MASP). Users who deposit assets into the shielded pool are rewarded with NAM tokens, promoting privacy-enhancing activities across the network.