NXM

NXM

NXM is the governance and utility token of the Nexus Mutual protocol. It is used to balance the marketplace for insurance products.

Risk Rating
Best
$66.16
2.87%
Summary
What we like
NXM represents ownership of the Nexus Mutual's Capital Pool, which is the pool where revenue accrues and where claims are paid.
What we like less
NXM is illiquid and cannot be purchased on the open market. Instead, users have to go through a KYC process to purchase through Nexus itself. Users can sell instantly by wrapping NXM for wNXM, which trades at a significant discount.
What it means for you
Holding NXM provides you membership rights to the Nexux platform. This enables you to buy smart contract cover, provide capital, govern the protocol, and assess risks and claims.
Information
Blockchain
  • Ethereum
Info
Key Metrics
  • Market Cap: $268.4M
  • Fully Diluted Valluation: $268.4M
  • FDV / MC: 1
  • Ranking inside Exponential (excluding stables): #47
  • Circulating Supply: 4,059,488
  • Total Supply: 4,059,488
  • Total Supply: 4,059,488
  • ATH: $185.97 (11/10/2021)
  • ATL: $6.96 (07/22/2020)
Risk Assessment
Best
Asset Strength

NXM is a low-cap asset that represents the blockchain`s native currency or monetary fee used to execute transactions on the network. This asset is exposed to the underlying risks of Nexus Mutual, a protocol rated as Watch out.

Asset Tokenomics

NXM has an uncapped supply. NXM is the utility and governance token of Nexus Mutual. Holders vote with their tokens on which protocols are safer, creating an insurance marketplace.

Asset Volatility

NXM is moderately correlated to the overall market.

Dependencies

Nexus Mutual

Things to know about NXM

What is NXM used for?

NXM is the governance and utility token for the Nexus Mutual platform. It provides users with membership rights to the platform as well as represents a claim over the underlying assets of the protocol, or the Capital Pool. The token is required to use all aspects of Nexus Mutual's operations. This includes staking NXM to vote on claim assessments and provide insurance for smart contract covers.

NXM tokenomics

NXM has an elastic token supply with no fixed cap. NXM is minted when someone buys and burnt when someone sells. At launch, the Nexus team created an initial supply of 3M tokens. The tokens were distributed as follows: 1M allocated to the Nexus Mutual Foundation, 1.3M to the team, and 700K to seed investors.

How does NXM accrue value?

NXM has intrinsic value given its ownership claim over the protocol's Capital Pool. The token price is directly linked to the performance and financial stability of the platform. NXM uses a bonding curve to determine its price, which means its value rises and falls deterministically based on its Capital Pool and the Minimum Capital Requirement (MCR). The Capital Pool refers to the funding level of the protocol, while the MCR refers to the amount required to cover all claims. If demand for cover increases, then the NXM token price should rise as there is more demand to purchase the token to pay premiums and more capital is need to cover the increased cover demand. Conversely, when claims are paid out, the Capital Pool shrinks which leads to a decrease in token price.