$NXM Token Rights
Updated Mar 11, 2026Overview
- Token(s)
- NXMsNXMveNXM
- Token Type
- GovernanceUtility
- Utility
- Staking
The NXM token is a governance and utility token backed by crypto assets held in the capital pool contract. When someone contributes ETH, USDC or cbBTC to the Capital Pool in the Nexus Mutual user interface, NXM is minted and transferred to their wallet. NXM can be staked and doing so creates open capacity for other members to buy cover.
Governance Rights
ControlNexus Mutual is an onchain discretionary mutual governed by its members. Every member who joins Nexus Mutual has voting power equal to one vote plus the sum total of their NXM tokens. The Mutual uses an optimistic governance model where the Advisory Board (AB) creates a proposal and sets the default outcome. The AB creates a proposal in parallel on the Nexus Mutual DAO Snapshot space, where Nexus Mutual members can vote to reject the default outcome. If Nexus Mutual members vote and meet the quorum for rejection, the AB's default outcome is rejected and the proposal does not move forward.
Governance Decisions
AB members serve at the discretion of Nexus Mutual members. Nexus Mutual members can replace an AB member without interference from existing AB members.
Treasury Decisions
DAO members decide what community projects and teams are funded from the treasury.
Revenue Decisions
Any investment allocations are decided by members through the Mutual's governance process using the Investment Proposal Template outlined on the governance forum.
Fee Switch
ONCover fees and investment earnings accumulate into the Capital Pool which is jointly owned by all Nexus Mutual members. 50% of the cover fee is minted in NXM rewards and distributed to stakers in the pool
Resources
Primary Value Accrual
Protocol Revenue ShareValue accrues to owners of the Capital Pool and NXM stakers who earn cover fees
Economic Rights
Value CaptureCover fees and investment earnings accumulate into the Capital Pool which is jointly owned by all Nexus Mutual members.
Buybacks
N/ADividends
50% of the cover fee is minted in NXM rewards and distributed to stakers in the pool. Tokenized staking positions accrue rewards using a time-based veToken model, where locking NXM for longer periods increases the share of cover fees a member will receive.
Burns
ActiveWhen members delegate their staked NXM to a pool, their NXM can be burned to facilitate claim payouts if members who purchased cover from the pool file successful claims. If a claim is filed and approved by claims assessors, then the staked NXM allocated to the relevant cover product is burned proportionally across all stakers. NXM stakers earn rewards but run the risk of losing their staked NXM, as NXM burns can result in a portion of a position or the whole position being burned.
Ownership
Raise History
2 rounds · $2.96m total| Date | Amount | Round | Valuation | |
|---|---|---|---|---|
| Feb 16, 2021 | $2.7m | — | — | |
| Apr 04, 2018 | $260,000 | Seed | — |
- Fundraising
- Unknown
- Equity Revenue Capture
- Unknown
- Associated Entities
- DAO