PayNuq, a local digital currency powered by Encointer, has officially launched in Zaria, Nigeria. PayNuq empowers the local community with a basic income and a self-sustaining economy. From solar-powered infrastructure to a smart community reserve model, PayNuq is setting the stage for decentralized, human-centered innovation in Africa.
By Asyia Aminu from the PayNuq Community Team
A Quiet Shift, A Bold Step
On a warm afternoon in Zaria, Nigeria; under the shade of local trees and the quiet hum of community chatter, something transformational began. We launched PayNuq, our community’s very own local digital currency, built on the Encointer protocol and powered by people.
PayNuq is more than just a new form of money. It’s a bold experiment in local resilience, economic inclusion, and collective ownership, and we’re proud to say, it’s happening right here in Zaria.
What is PayNuq?
PayNuq is a community currency powered by Encointer, a protocol on the Kusama network that enables the creation of local, universal basic income (UBI) currencies.
Through regular in-person ceremonies, each verified member receives an equivalent of approximately ₦ 1,000 in PNQ every 10 days, designed to cover local spendings of basic needs such as food, essentials, and local services.
It’s a system that’s:
- Fair and fraud-resistant via Encointer’s Proof-of-Personhood.
- Inclusive and local by design: supporting small businesses and individuals.
- To prevent hoarding, PayNuq slowly loses value if not spent (called ‘demurrage’), encouraging regular use, trade, and support for local businesses.
PayNuq is our community’s way of saying: “We take care of ourselves.”
The Launch Moment
The launch event was not just technical; it was emotional. Community members gathered for our first key signing cycle meetup and watched videos of successful community currencies in other places, such as Ijara Isin, Kwara State
Then, we opened the floor. Barbers, farmers, tailors, shopkeepers, restaurant owners, and service providers spoke up, asked questions, and imagined how PayNuq could work for their lives and livelihoods:
- “Can I use PayNuq only within the community?”
- “How do I know which businesses accept it?”
- “Can I grow my business using this?”
- “Is there a way to earn more or use it for loans?”
And we answered. Honestly, openly, and with excitement. Then, as they witnessed the first minting of PayNuq, smiles spread across participants. The idea clicked. The vision became real.
Mapping the Local Ecosystem
A lot of preparation has gone into PayNuq before the first coins were minted. PayNuq has launched with around 30 people and already has 8 small businesses ready to accept and circulate the currency.
Each business is a recipient and represents an active node in our economic web, with connections between them built around mutual value.
To have a rough idea of transaction volume, a detailed mapping of the local value exchanged has been crafted (Table 1). Based on the mapping of current economic value flows, an estimated monthly turnover of 2’000 PNQ was calculated (resulting in a target market cap of ~24’000 PNQ).
| Inflow | Outflow | Total Volume | Balances | |
| Gas Refiller | 95 | 250 | 345 | 155 |
| Transport | 225 | 265 | 490 | 40 |
| Farmer | 280 | 100 | 380 | -180 |
| Grocery | 570 | 250 | 820 | -320 |
| Telecom | 95 | 205 | 300 | 110 |
| Designer | 80 | 220 | 300 | 140 |
| Restaurant | 575 | 560 | 1,135 | -15 |
| Branding | 75 | 145 | 220 | 70 |
| Total | 1,995 | 1,995 | 0 |
Table 1: Estimated Monthly Transaction Value between the 8 official PNQ acceptance points in PNQ (or ₦ 1’000).
To leapfrog the build-up of the necessary volume, a “fill the community reserve” strategy was chosen. In the first 4 cycles, a closed group of community members has minted 100 PNQ each (instead of the 1 PNQ planned). This initial sum was then transferred to an account controlled by the community. Anyone who wants to can now purchase PayNuq with a 10% discount directly from the community reserve and buy at favorable prices from local shops.
Concrete: To get 1 PNQ, one needs to pay ₦ 900 (shops will still accept 1 PNQ equivalent to ₦1000). This way, the community reserve can build up a balance in local fiat currency, besides the initial boost in PNQ.
Further, the mapping helped us understand which businesses will likely acquire a surplus and would probably want to exchange excess PNQ with the community reserve. Here, the idea is that they will do this with a ~20% discount, leaving a little margin for the community reserve to cover operational expenses and the demurrage lost.
Building More Than Currency
One of the most exciting innovations in our launch is the beginning of PayNuq’s Community Reserve Model. Besides acting as a liquidity provider for acceptance points with an excess in PNQ, we are exploring the following ideas: Interest-free microloans to support small business growth, combined with a stake-based model where borrowers share success with the community. The lending cycle model pioneered by Noyta in Tanzania also serves as inspiration.
Reflections of our First Steps
What we have learned in the first weeks of running PayNuq:
- Curiosity is powerful: Even those who had never heard of blockchain left the event asking about wallets and marketplaces.
- Real-world clarity is everything: Showing examples from other communities helped demystify the idea.
- The best way to grow is to listen: Every question gave us insight into what to build next.
When PayNuq is introduced in the community, the conversation doesn’t begin with blockchain or technology. It begins with people and with what matters to them:
“PayNuq is your own community currency. Value is kept circulating right here, where we live.”
“There’s no need to be a tech expert. No bank account is required. Nothing needs to be purchased. Just join a local meetup, get verified, and PayNuq will be received.”
“It’s not magic. We build it together. It’s community. And you’re part of it.”
Next Steps
We’re just getting started. In the coming months, we aim to onboard over 50 people and 10 key businesses. We’re building trust and cohesion through regular community cycles, growing awareness with local events and stories, and preparing to establish a local NGO partner for long-term growth.
A Currency Rooted in People
PayNuq is a soft revolution. It doesn’t ask for permission from banks or corporations. It asks for cooperation: from neighbors, from businesses, from families.
What we’re doing in Zaria is just another example. But it’s also a call to others: this model can grow. It can adapt. It can empower. It’s not about decentralization for its own sake. It’s about recentralizing value into the hands of the people.
To our friends around the world, we say: Watch Zaria. Then build your own.
Want to learn more or start something in your community? Reach out to us, we are happy to share our experiences!
