NYM token buyback

In the lead up to the launch of NymVPN on 12 December 2024, Nym will be conducting a token buyback of $1 million USD in NYM from the market. The goal is simple: boost the Nym treasury while the price of NYM is advantageous and use it to improve the Nym network ahead of launch. With payments for NymVPN live in December, there will then be a perpetual NYM buyback organically linked to the demand for and usage of the app.

What is a token buyback, and why do it?

A token buyback occurs when a seller buys back their own tokens as a means to restrict overall supply and boost their treasury. There is currently an oversupply of NYM tokens on the market with the price therefore not reflecting real demand and usage.

“As we announced on 5 November five years ago in our initial litepaper,” Harry Halpin, CEO of Nym Technologies notes, “the entire point of the NYM token launch was to build the supply side of the decentralized network of servers that the NymVPN is built on. Of course, without NymVPN taking payments and converting them to NYM tokens as demanded, there are simply too many NYM tokens out there.”

In light of the upcoming NymVPN and taking advantage of a bearish crypto market, Nym will be conducting a token buyback during the month leading up to launch. Doing so will replenish Nym’s warchest to supercharge the app, network, and operators.

“A 1 million dollar buyback,” Halpin clarifies, “should remove much of the existing NYM from the market. I am excited to see NymVPN turn on a buyback from payments in a month, so this 1 million buyback is just the beginning.”

The up to 20 million NYM that Nym will buyback over the next month will be directed toward core goals:

• marketing to boost consumer awareness of NymVPN
• reward network operators in order to improve the Nym network on which the app runs
• offer NymVPN services to people like journalists and activists who urgently need advanced privacy protections.

More than a VPN, more than a token

NymVPN is much more than a VPN: it is a decentralized and token-incentived community of operators that can provide privacy protections, such as safeguarding metadata records, that no other network can. Traditional VPNs are powerless in the face of artificial intelligence (AI), and no other privacy service runs on a Noise-Generating Mixnet (NGM). By adding “noise” to the network, NymVPN can provide everyday web users with a tool sophisticated enough to defend themselves against AI-powered surveillance and metadata harvesting.

The NYM token also is much more than a token: it is what incentivizes the whole decentralized network. Network operators are rewarded in NYM for their services in anonymizing user traffic, and each user payment for NymVPN is converted into NYM tokens to delink a user’s payment from their usage of the app. Each new subscription will trigger more NYM buy orders as well as fully anonymized VPN use.

What to expect next

The buyback over the next month will be a crucial test for the beginning of a perpetual buyback mechanism to start with NymVPN payments, all of which will be converted to NYM tokens through buy orders. By restricting token supply, the price of NYM can then be linked more closely to usage and demand.

Here’s what to expect in the next month:

• Harry Halpin will be demoing the latest stable version of NymVPN at WebSummit (Lisbon) and DevCon (Thailand) next week
• Anyone can now sign up for a free 1-month pass to use NymVPN Beta
• Payments will be live on 12 December 2024, commencing the process of NYM buy orders from user subscriptions

As NymVPN enters the market and the network is actually used by ordinary people, more servers in different countries will likely be needed with much higher capacity to match demand. These servers will be fueled by NYM tokens provided by the expanded treasury. In addition, as all users will be allowed to use the network for a month for free due to the US elections, the buyback mechanism will allow the fine-tuning of the future payment-driven buyback process while NymVPN is still free.

Don’t miss your chance to get your free 30 day voucher today! And stay private friends.