I wanted to provide an update from the Nexus Mutual team. To start, I wanted to emphasize that the community played an integral role in determining the launch parameters for RAMM in the months leading up to the on-chain proposal, where members unanimously voted to launch the RAMM with the current parameters.
Creating an NMPIP to Update the RAMM Parameters
As members, you can create a formal NMPIP with the suggested changes to the RAMM’s parameters and I will ensure it is whitelisted on-chain for a vote. The RAMM’s parameters can be updated through an on-chain governance vote, and I would encourage everyone here to form a consensus on the final parameters you would like to propose, so it can move from a request for comment (RFC) to an NMPIP.
Any one who wants to put together the NMPIP can use the resources in the Nexus Mutual documentation and the guidelines on the governance forum. Members can go through the governance process and raise an NMPIP on chain through a no action vote, which the Advisory Board would then whitelist on chain.
I’m happy to serve as a resource for community members who want to raise an NMPIP.
Timeframe for the Initial Exit Period
A point of clarification: there isn’t a limited number of days for people to exit. The initial exit period will last as long as the initialBudget amount does, so until members redeem the remaining 32,790 ETH, the initial exit period will still be in effect.
Redemptions to Date
During Part 1 of the liquidity parameters discussion, the community talked about redemptions after the RAMM was implemented. So far, we’ve seen 98 members redeem NXM for ETH in varying amounts, with a total of 561,381 NXM redeemed for 11,026.9 ETH.
Some large holders have redeemed NXM for ETH, but this was anticipated and previously discussed in Part 1 of the liquidity parameters discussion. That discussion resulted in a signalling vote, where members signalled their support for 30% of the Capital Pool as the initialBudget for the initial exit period. A total of 1,352,548 NXM (20% of total supply at the time of vote) participated in this signalling vote.
We even had other community members note on the high rate of community participation in this discussion and vote:
As I shared above, I’m happy to serve as a resource for community members who want to raise an NMPIP to update any RAMM parameters folks here would like to propose changing.
Commenting on Any Individual’s Redemptions
As far as I understand, no one from the Foundation plans to comment on any member’s decision to redeem NXM. Everyone is free to review on-chain activity and speculate on their own, but unless individuals who redeem NXM decide to issue a statement, the Foundation will not issue any comment.
Every member has the right to redeem their NXM for ETH. The tokenomics revamp initiative was started for the benefit of all Nexus Mutual members (i.e., Mutual members overall and NXM holders).
Design of the RAMM
The DAO R&D and Community teams both provided regular updates on the tokenomics project, and the draft whitepaper was shared four (4) months ahead of the on-chain vote.
During the RFC phase, no community members commented on the governance forum in response to the post. The only comment I found during that time frame on Discord was the one below, which is positive:
In both the draft whitepaper and the finalised whitepaper, the RAMM’s operation is summarised and the following is outlined in both the draft and the final whitepaper:
To enable price discovery, there is a ‘ratchet’ mechanism that moves the spot NXM prices up towards Book Value over time from below for the Below Pool and down from above for the Above Pool.
This was illustrated in the Pre-Discussion Phase: RAMM Education Guide, Call for Questions post on the governance forum, where Rei’s simulations were highlighted in August. Rei also shared a variety of simulations for the initial exit period in Part 2 of the liquidity parameters discussion, with only one person commenting on the forum post.
Since launch, the RAMM has been working as designed and as outlined in the Ratcheting AMM whitepaper.
Assessing Appetite to Redeem
While I understand the call to poll NXM holders to see if they plan on redeeming, I personally still feel this won’t be effective. I’m happy for someone in this discussion to conduct a poll, but if the people here aren’t willing to publicly share the amount of NXM they plan to redeem, it’s highly unlikely that the broader community of holders will either.