There has been a lot of debate in the community about the rewards for risk assessment and that they are too low to justify the risk. This, among other reasons, has led many people to exit the system and issue wNXM, which has now reached a point where the price of wNXM is lower than that of NXM.
While the team is working on product improvements and improved distribution channels, I suggest we mint 100,000 NXM and move them to a multi-sig controlled by community members. This way, we are essentially creating a Nexus Mutual Community Fund to give the community more means to help progress the protocol.
This community fund could be used for many purposes. Here are a few ideas:
- Reward additional staking incentives per week to increase Risk Assessing rewards
- Reward community contributors for outstanding work (like writing a newsletter for example, or help in coordination of the community fund)
- Give grants for projects building on top of Nexus Mutual
- Marketing expenses
A dedicated Discord channel and category in this governance forum should be enough to coordinate issues regarding this community fund.
To streamline decision-making, I suggest using snapshot.page to cast votes on how to spend the funds. This will also mean that NXM holders are still in control over how the funds are ultimately spent. The multi-sig holders then execute the action as soon as possible.
Last but not least, let’s talk about logistics and how to manage this efficiently.
The multi-sig will require one technical person to prepare the contract calls at least. I am suggesting to use a 5/7 multi-sig with the following composition:
- one member from Nexus Mutual itself
- three members from investors in Nexus Mutual
- three members from the community who have been vocal in showing their support in the past
If a multi-sig holder is not responsive or has been too slow to sign, they can be voted out by the community, given a replacement can be found.
100,000 NXM would be worth roughly $2 million at the time of writing and would dilute the supply of Nexus Mutual by 1.5%. This would give the community fund enough firepower to be taken seriously and not hurt NXM holders too much, as dilution is minimal.
Some initial suggestions for multi-sig signers (please nominate your own suggestions in the comments):
- Rox from Nexus Mutual
- Yan Lieberman at Delphi Digital (https://twitter.com/YanLiberman)
- Lasse Clausen at 1kx (https://twitter.com/lalleclausen)
- Richard Chen at 1confirmation (https://twitter.com/richardchen39)
- Luciusfang from the community (https://twitter.com/luciusfang10)
- Krugman from the community (https://twitter.com/krugman25)
- BatmanDeFi from the community (https://twitter.com/BatmanDeFi)
Should we create a community fund for Nexus Mutual?
How much NXM should we mint for the community fund?
- 10,000 NXM (0.15% dilution)
- 50,000 NXM (0.75% dilution)
- 100,000 NXM (1.5% dilution)
- 150,000 NXM (2.25% dilution)
- 250,000 NXM (3.75% dilution)
- More (please comment)