An update on the tokenomics of the Nym mixnet.
Nym is a decentralised privacy mixnet. The Nym mixnet has an associated NYM utility token that grants usage rights to the privacy network.
The tokenomics of the Nym mixnet is intended to incentivise people to provide privacy, rather than surveillance.
Not only that, the tokenomics has been designed and engineered to incentivise good privacy protections: the better the service in terms of mixing packets, the better the reputation of a mix node in Nym will be in the overall infrastructure. In essence, Nym serves a ‘reputation’ token for mixnetworks.
Recap on token milestones
A total supply of one billion NYM tokens was generated on the decentralised mainnet Nyx chain in February 2022. The NYM token comes in two flavours: Native tokens on the Cosmos ecosystem (used within the privacy infra) and ERC20 tokens - as much software does not include support for Cosmos, so a bridge allows them to be ‘wrapped’ as ERC tokens. Transfer between the two versions is done via Gravity Bridge. Currently 50m tokens are ERC20.
On 9 February 2022, 75M NYM was listed on CoinList and the tokens were issued on 14 April 2022.
The NYM token is now listed on several exchanges — see the full list here.
Launch until now
The NYM mainnet was launched in January 2022 with a healthy 480 nodes operating as of now (240 nodes per epoch). Applications via Nym Connect are available here. Staking is enabled and approximately 40m tokens are currently staked.
Since the Mainnet release, approximately 3m tokens have been distributed from the mixmining pool to our worldwide community of mix node operators (vs the budget of approximately 20m tokens).
The first tranche of team and investor tokens were distributed in August 2022. While we have seen a healthy increase in staking resulting from the release of liquid tokens, we have so far been able to keep the staking parameters the same, subject to weekly reviews.
Recent industry happenings
- Wintermute is one of the market-neutral market-makers that focus on NYM tokens. While there was an interruption to Wintermute services due to a hack that led to some real problems the last few days, as of 21 September, everything is back in order and stabilised.
- The Ethereum Merge was successfully completed on 15 September. There was a short pause on Gravity Bridge where ERC20 NYM tokens were not able to be bridged to Cosmos SDK and vice versa.
We understand that our community has asked for a regular update on the circulating supply. Please note that we are working on making an endpoint available to external service providers and will provide more updates.
Take note
No one should purchase NYM tokens for financial gain or speculation. NYM tokens should only be used within the Nym mixnet. Again, NYM is a utility token not a general purpose payment mechanism nor cryptocurrency. For investment purposes, do not use NYM tokens but instead look into other investment vehicles.
NYM tokens are required to use the mixnet or run a mix node. Check your delegations to see how the mix node is performing. If your nodes are over-saturated, you might want to redelegate! More on how to select a mix node delegate here.
This is not an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, Tokens to any U.S. Person or in the United States or in any other jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the laws of any such jurisdiction.
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