Nexus Mutual Community Fund

I’m opposed to minting NXM for this.

The idea is a nice, but quite frankly the community is not mature enough for this.

Thank you @Hugh for the suggestion - would love to be involved going forward if the community is supportive.

Personally I agree with the sentiment that a higher mint % is net beneficial as it will allow the protocol the flexibility to pursue several initiatives to resolve the current issues the project faces.

From a value creation perspective, for those who are worried about the net impact of minting new supply on price, in my view we will see far stronger price appreciation in being able to attract new capital to take the MCR % above 130%, and instill more confidence for further capital to flow in which will more than offset this small dilution in the short term - unfortunately right now with no additional incentives I don’t see material amounts of new capital entering the mutual and we have seen this play out in the last two months. As many have pointed out even the 3.75% is very small compared to other projects who have been able to drive accretive outcomes with far larger mining incentives - I don’t see it as a slippery slope but rather a direct response to the first time the project has faced a real issue on attracting new capital to grow, and competitive threats from other projects amassing capital.

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While I think this may be a good idea, provided the funds are decently managed and with little inflation… I’d like to express that rewarding stakers from inflated NXM is detrimental in my opinion. It is an inefficient use of capital. I don’t see it as a long term solution. Staking incentives should come from a good pricing. Good pricing comes from good assessing of the risk/reward and/or adjusting to market demand.

I wouldn’t give a lot funding to marketing as I believe in focusing on building a better product first and the growth should be long term, organic in order to be sustainable. Why invite a lot of guests when you don’t have room?

I see merits in rewarding community for various contributions and give grants for projects related to Nexus Mutual, and I would vote for this. This is a mutual, after all. :slight_smile:

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I think the idea of increasing the staking incentives is worthwhile. It is such a bad look to consistently not have any capacity on some of the most popular protocols, plus presumably we are missing sales as a result. Anyone staking on a contract that is currently maxed out is therefore not receiving any more income from their stake.

However, I am concerned that we should should not fall into the pattern of repeatedly minting new tokens to try and get the mutual out of any ruts it is in. I think we should look at other solutions to building a pot we can use for incentives that do not involve inflation of the supply. I love the idea of taking the NXM-ETH spread and using it for incentives. I’ve no idea how we make that happen though. Could we use part of this mint to get that scoped and developed?

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I am very supportive of this also - however I think main focus should be on marketing and building on Nexus. I understand the the concern about dilution and I was originally against the previous rapid MCR increases for the same reason - but they worked out really well and I think if we are focused on the long term a small inflation now should be inconsequential. I am particularly excited about encouraging built on Nexus as that is a pretty key moat for us if we can fill it.

@cburniske from PlaceHolder might be another good signer for consideration he has a lot of credibility and believes in the protocol’s long term future

Yes, it is, and the incentives for staking can and should be increased. However, my dear fellow members, this should be done, in general, via good pricing mechanisms. And it should not be done by punishing with inflation those members who don’t stake, as a means of coercion.

Yes, this is very unfortunate and … in a healthy and mature mutual we should almost never be confronting with such a situation. The solution to this, at least partially, was suggested recently by Hugh, via updating capacity factors for popular and more battle-tested contracts . Also, we discussed in the past the so called surge factor, that extracts more revenue out of covers that are close to global capacity limits, and that is a form of… dynamic pricing, that I believe to be very beneficial and argued for it on numerous occasions in the forum.

And again, ladies and gentlemen, we should not be doing this by diluting NXM to increase rewards on popular contracts! That is if we want this inflation to be a one time jab, at least… As I’m afraid that in order for this incentive to be efficient on popular contracts, it would require a lot of funds… constantly. So whatever amount we decide to take out via inflation, would not last a long time.

I’m strongly of the opinion that rewards need to be long term sustainable, even though I do see arguments for short term extra rewards in a bootstrapping phase.

I believe we should conduct the token mint, experiment with reward structures and use that experience/data to devise some long term sustainable ones.

The best place to get the extra rewards from on an ongoing basis is the 2.5% sell spread which has burned about 142,000 NXM since launch. Increasing cover prices harms the user we want to encourage the most. This approach funds rewards from the user we want the least, the shorter term speculator.

You could even argue this token mint is like a retrospective allocation of the sell spread already burned to stakers.

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I support this proposal at the 250K mint as well as a mechanism to continuously replenish and grow the fund such as using part of the sell spread that @Hugh mentioned. I believe this is a net positive and the benefits gained from having such a fund will more than outweigh the dilution.

I appreciate being suggested as a multisig signer and would happily accept if I was voted as one of the signers. I currently manage $2.2M publicly, $1.1M as a social trader on TokenSets and $1.1M as the portfolio manager for the Yam dao, and have built trust and rapport with the broader DeFi community.

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The community fund is up for voting on Nexus Mutual: https://app.nexusmutual.io/governance

Please cast your vote.

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I’m with Lasse on the inflation of 100k NXM. I also would love to participate in the multi-sig if I can be helpful.

The group of suggestions looks great but in case anyone’s not aware, BatmanDeFi is no longer participating in the community (as much as I appreciated his work previously).

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Update: The governance vote has passed successfully, and the Nexus team is ready to mint the 250k NXM.

As a next step, we need to determine the multi-sig participants. To make this process as democratic, we’ll be looking to conduct a public vote on snapshot. For anyone who wants to be a signer (except for Rox or whoever else joins the multi-sig from Nexus Mutual), complete the following instructions below:

  1. Write a forum response below with the details
    a. Who are you?
    b. How have you been involved with Nexus Mutual so far?
    c. Why do you want to participate in the multi-sig?
  2. Post your nomination on Twitter with the tag #NexusMutants

The deadline to submit your nomination is next week, Monday 25th January noon UTC.

After that, we’ll create a Snapshot poll where everyone can vote with their NXM on the multi-sig signers.

The purpose of this public discovery is to give everyone a chance, even if they have not been nominated here in the forum before, and to allow NXM holders to learn more about the people who would control the multi-sig.

I am tagging here everyone who has signaled interest so far to become a signer (but really everyone is encouraged to reply):

@Yan_Delphi @lasse @rchen8 @luciusfang @krugman25 @8fold @Gauthier @gyoung10 @DeFi_Dad

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a) Partner at 1confirmation
b) seed investor, creator of nexustracker.io and @NexusMutualBot on Twitter
c) contribute to an ecosystem of projects building on top of Nexus

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a. A few things I have done publicly in the DeFi space: TokenSets as a social trader, run an educational DeFi channel on YouTube called Level Up! DeFi, and recently accepted the role as portfolio manager for Yam Protocol.
b. I joined as a Nexus Mutual member in late July/early August of 2020. Since then I’ve actively participated in claims voting, staking, educational write-ups on Twitter, and helped coordinate between developers and protocols for various initiatives that Nexus has considered.
c. I believe strongly in the future of Nexus Mutual. I have a public and trusted presence in this space and am someone the community can trust as a multi-sig signer.

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a) Co-Founder Delphi Digital, Partner Delphi Ventures
b) Investor, worked on several long form research reports to educate clients and the community about Nexual Mutual, author of proposal to pause MCR growth
c) To continue contributing to the growth of the protocol

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a. Lasse Clausen, founding partner of 1kx
b. First fund to contribute to the Nexus Mutual bonding curve. Active cover underwriter / staker. Some contributions to discussions. Fighting Degen Spartan FUD.
c. Through our full time work as investors we have a good helicopter view of DeFi and the latest developments. That can be helpful in making good decisions for the Nexus Mutual community.

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I’d like to ask what ideas you guys have for the fund. As I see it, the limiting factor right now is distribution. How would you use the fund to build out distribution?

a) Chief DeFi Officer at Zapper and DeFi educator / investor
b) been buying cover since Nov 2019 and staking NXM since summer 2020. I’ve made tutorial videos on buying cover and staking NXM as well as podcasts, Ethereal talks, and livestream interviews with Hugh.
c) I’m here for the long run. I not only want to help Nexus grow but I wholeheartedly believe in the team with Hugh and Roxanna.

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a) Market Research Analyst at CoinGecko, Ex-Actuary.
b) Been active in governance voting, forum discussion and staking since I joined back in Feb 2020. Currently serving as one of the discord’s community moderators.
c) NXM is my biggest bag after BTC and ETH, I intend to see it succeed. Having a signer with actuarial knowledge will be helpful.

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a) Baby crypto whale, born late 2012. Ethereum genesis sale contributor. DeFi is my home.
b) Invested early in NXM. Have a decent stake, that I’m staking :). Community moderator and contributor.
c) To do my best at contributing to the growth of the Nexus Mutual.

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this is post is amazing! best way to learn from great investors and supporter of the project!
impossible to compete with these highly experience members in the community