Nexus Mutual

The NXM token serves as both a utility and governance token. It's backed by crypto assets in the capital pool contract and is minted when members contribute assets like ETH or DAI. Token holders can use NXM for:

On-chain governance: Voting in decisions about protocol modifications, capital pool allocations, and usage. DAO governance: Proposing and voting on how DAO treasury resources are utilized. Staking: Underwriting processes are powered by staking NXM. Members can either stake their tokens directly or manage a staking pool. This staking mechanism facilitates cover purchasing, with stakers receiving a part of the cover fee as rewards. Claims assessment: Members can stake NXM to be part of the claim assessment process, which has protective measures against fraudulent activities. The token’s price and capitalization are determined through a unique continuous token model or bonding curve. This model ensures optimal capital efficiency, balancing adequate funds for claim settlements and preventing excessive capital accumulation.