NXM price

NXM

Nexus Mutual allows people to buy cover and protect against on-chain and off-chain risks. In the event a loss occurs, someone with cover can file a claim, have their claim reviewed by members, and have their claim paid out if they provide proof of loss.

Nexus Mutual’s first product was smart contract cover that provided protection against smart contract failures.

The NXM token represents the membership rights in Nexus Mutual, along with the ability to participate within the ecosystem through buying cover, governance, staking, and claims assessment. The token leverages a bonding curve to determine the price, which is driven by how much capital the mutual has and how much capital it needs to meet all claim obligations with a certain probability.

Users can stake NXM to vote on claim assessments and on whether or not a certain claim is valid and should be paid out. The members who decide to vote in accordance with the consensus are rewarded with NXM, whereas the ones that vote against it have their tokens locked for a longer period of time. Members who submit fraudulent votes on claims can have their NXM burned and the fraudulent decision can be overturned.

You can review the Nexus Mutual Dune Dashboard made by Richard Chen for the mutual's key performance indicators.