RFC: DAO Teams Budget Request Proposal (Aug 2025 to July 2026)

Governance Discussions
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RFC: DAO Teams Budget Request Proposal (Aug 2025 to July 2026)

12-month funding request: 980,650 USDC + 5,830 wNXM
Funding period: 1 August 2025 to 31 July 2026
RFC review period: 22 May–5 June
NMDP review period: 6 June–20 June
NMDP Snapshot voting period: 23 June–27 June

Overview

In the last year, the active DAO teams–Community, Research and Development (R&D), Marketing and Product and Risk–have worked on behalf of members and focused on the priorities outlined in the NMDP 7: Q3 & Q4 2024 | DAO Teams Budget Request Proposal forum post.

Now that this annual funding period is coming to an end, we, the DAO team leads, have outlined the proposed teams, their current priorities, and the DAO teams’ 12-month budget request in this proposal.

Mission and Values

Nexus Mutual is on a mission to provide onchain protection against crypto risks and beyond. Since 2019, the Mutual has sold more than 10,000 covers and protected over $5.7B worth of crypto assets against onchain and offchain risks.

DAO team contributors work to ensure the long-term sustainability of the Mutual. To achieve this shared mission, our actions reflect our core values.

  • Trustworthiness. We pay claims. Our members have already voted to approve over $18 million to those who lost funds. Our reserves are owned by members and we manage risks to ensure there is always enough money for claims, so members can be confident in our cover.
  • Egalitarianism. We’re a mutual which means we’re owned and governed by our members—and almost anyone can become a member. We believe that everyone should be able to find the cover they need and anyone else should be able to provide that cover.
  • Integrity. Nexus Mutual was founded to help protect anyone against a wide variety of risks. That has been our guiding vision since day one. Honest participation in the Mutual’s governance is rewarded. Members will always own the Mutual’s assets, review the validity of claim requests, and vote on claim outcomes.

Funding renewal for existing DAO teams for August 2025 to July 2026

Product & Risk team

Purpose

The Product & Risk team is responsible for developing and improving cover products to drive sales, enter new markets, and provide members with exceptional protection against critical on-chain and off-chain risks. They also support both new and existing syndicates and distributors building on top of the protocol. Additionally, the team researches emerging risks and designs comprehensive risk frameworks and pricing models.

Priorities

Over the next year, the Product & Risk team will prioritise projects that center around improving the member experience and new cover product development.

Product Delivery Improvements

Permissioned Claim Assessment. The Product & Risk team collaborated with other teams across the Foundation and DAO to conduct user testing on the current claims process. A key piece of feedback emerged consistently: “How do I know who is assessing my claim?” Member participation in claim assessments has historically been low, and both existing and prospective members identified the anonymity of assessors as a major concern. In response, the Product & Risk team is now working with the Foundation Engineering team to develop a permissioned claims assessment model—an evolution of the previously approved delegated claims approach.

The permissioned claim assessment model will enable the Advisory Board to vet and approve qualified individuals or teams to serve as permissioned assessors. These assessors will be organized into assessment groups, each responsible for reviewing, evaluating, and validating claims submitted under specific cover product types (e.g., Protocol Cover, Bundled Protocol Cover, Fund Portfolio Cover, etc.). Unlike the current anonymous model, permissioned claim assessors will be publicly known and required to provide clear rationale for their decisions to approve or deny claims. This increased transparency and accountability is expected to enhance trust and confidence in the claims process by ensuring that assessments are carried out by reputable, identifiable participants.

Revamped Claim Submission Flow. The Product & Risk team has identified opportunities to improve the claim submission process and reduce friction for claimants. One key enhancement involves introducing a “discussion” claim stage, which would require claimants to discuss the initial details of their claim with permissioned assessors before submitting their claim onchain.

This stage would enable assessors to assist with calculating the claimant’s loss, reviewing the provided proof of loss, and offering feedback on incident details. By doing so, claimants can address any gaps or errors early—avoiding scenarios where they pay a claim deposit, submit incomplete or inaccurate information, and ultimately face claim denial.

Offering Alternative Proof of Loss Mechanism. With the Mutual’s current proof of loss mechanism, members must either sign a message or send a zero-value transaction from their affected wallet to prove ownership. This step is required at the time of claim submission and serves as the basis for validating the claim. However, this approach is limited to EVM-compatible wallets, effectively preventing the Mutual from offering cover for non-EVM ecosystems such as Solana, Bitcoin, and others.

To address this limitation and make protection more accessible, the Product & Risk team is working with the Foundation Engineering team to develop an alternative approach, currently referred to as “upfront proof of loss.” With this model, users would specify the wallet addresses they want covered at the time of purchasing their cover. These addresses would be stored securely in an offchain database to preserve user privacy. Members would be able to update their covered addresses over time—adding or removing wallets as needed—with each change being timestamped to prevent retroactive edits after a loss event.

This new mechanism would eliminate the need for transaction signatures from non-EVM wallets, enabling Nexus Mutual to extend coverage to non-EVM protocols on networks like Solana, BTCFi, Cosmos, and others. This new feature will help the Mutual tap into underserved markets, drive growth in cover purchases, and give permissioned claim assessors a clearer view of user exposure at the time of loss—ultimately helping claimants more accurately calculate their losses.

Rewriting the Nexus Mutual Documentation. The current documentation was originally created for the launch of Nexus Mutual V2 in March 2023. Although it has been updated periodically, it now requires a comprehensive refresh. The Product & Risk team will lead this initiative to ensure the documentation is both accurate and accessible. This includes rewriting key sections for clarity and incorporating diagrams and explanations that clearly illustrate how the Mutual operates.

Support for Other Team Initiatives

Updating the Buy Cover Experience. Since 2024, the Product & Risk team has launched a variety of new cover products. In the past, the search experience in the Nexus Mutual dApp was straightforward since Protocol Cover was the primary product available. However, with the addition of new product offerings, it has become more difficult for users to browse listings and find the right cover to protect their assets.

To address this, the Product & Risk team will work closely with the Foundation Engineering team to enhance the user experience for cover buyers. Planned improvements include:

  1. Enhanced search functionality;
  2. Filtering options based on the specific risks users want to cover; and
  3. A redesigned cover purchase flow tailored to different product types.

These updates aim to make it easier for users to discover and purchase the protection that best fits their needs.

Updating the Mutual’s Governance Mechanism. Nexus Mutual’s original governance contract has been in use since the protocol launched. After evaluating the governance contract, which is rather complex, the engineering team has decided to update our governance contracts and introduce a Snapshot component to full-member votes.

The Product & Risk team will support this initiative as the Foundation Engineering team develops a new implementation of the governance contract. While the underlying governance functionality will remain the same, the changes will involve development of a new governance contract with less complexity and a shift in the platforms (i.e., adding a Snapshot component) used for member participation. By moving voting to Snapshot, members will no longer need to pay gas fees to cast their votes—removing a key friction point that should allow for greater participation in governance decisions.

New Cover Product Development

Leveraged Depeg Liquidation Product. After launching Depeg Cover, we received feedback from users—both retail and institutional—that while they liked the product, it didn’t support leveraged-looping strategies commonly used on lending protocols. In the event of a depeg and subsequent liquidation, users would lose access to the covered token, making them ineligible for a claim payout.

In response, the Product & Risk team began developing a new cover product specifically designed to protect leveraged positions on lending platforms in the event of a depeg. Interest in this new product has been strong, and development is well underway. We expect to launch it in Q3 2025.

Updates to Protocol Cover and Other Protocol-Related Products. In Q2 2025, our team conducted user testing on several cover wording documents, including those for Protocol Cover and Bundled Protocol Cover. Based on the feedback received, the Product & Risk team will revise the language to ensure it clearly communicates what is—and isn’t—covered under each product.

New Cover Product Development. Our team is currently developing several new cover products that we’re not able to announce at this time. The Product & Risk team expects to launch these new cover products over the next several quarters. These cover products will open up new lines of business—specifically, ones that are not dependent on yield.

Expanding Ability to Cover Protocols, Slashing on Non-EVM Networks. The Product & Risk team is also working on a version of Protocol Cover tailored for non-EVM chains—complementing our alternative proof of loss initiative. Members have expressed interest in listings for protocols in ecosystems like Solana, Bitcoin, and Cosmos, including specific requests for slashing coverage.

To meet this demand, our team will adapt a version of our existing Protocol Cover wording to support these ecosystems. This will ensure our members can stay covered regardless of whether the protocol they use is EVM-compatible or not.

Ongoing responsibilities

  • Monitor the Mutual’s ongoing correlation risk across cover products
  • Manage the listing review process, coordinate new product type and individual listings with the Engineering team
  • Develop new cover wording documents with the Foundation Legal team
  • Communicate with staking pool managers when new listings are live
  • Work with the resident data analytics wizard on the R&D team to maintain and create new Dune dashboards to track the Mutual’s exposure and risk in the broader DeFi ecosystem

Team

  • Head of Product & Risk (FT). BraveNewDeFi

    • Description. BraveNewDeFi has moved to a full-time position on the Product & Risk team, where he conducts research on new risks and feasibility assessments for new cover products and cover wording development. Brave manages the Product and Cover listing process within the Mutual and regularly reviews new protocols for listings in the Nexus Mutual UI. He also works with the Legal team to create new cover wording, schedule, and annex documents to support product development and listings. In addition to this work, he reviews correlation levels across active cover and works with the BD team to track cover expiries, so the BD team can perform outreach and source demand for upcoming open capacity. As part of this role, he will work closely with staking pool managers in the Nexus Mutual ecosystem and manage the Community Staking pool. BraveNewDeFi will continue to serve as the point person when claim events occur.

  • Actuary, Risk Expert: Hugh Karp

    • Description. Hugh performs many duties within Nexus Mutual. He serves an important role on the Product & Risk team, as he focused on new product development and identifying edge cases. Hugh works with the Legal team to draft new cover wording documents and conducts outreach with potential cover buyers who are looking for new products or risk experts interested in building syndicates on top of Nexus Mutual.
Community team

Purpose

The Community team supports members, staking pool managers, DAOs, and the broader community by providing guidance and educational content aimed at growth. They also design, manage communication channels and programs to foster sustainable long-term community engagement and member retention.

Priorities

Over the next year, the Community team will focus on nurturing resilient, values-driven communities, deepening educational initiatives, and contributing to industry-wide efforts to advance shared standards around risk in DeFi.

  1. DeFi & Risk Learning Group: Coordinate the cohort-based, peer-to-peer learning program to onboard smart minds into DeFi, risk management, and Nexus Mutual. Explore ways to make the learning experience more appealing to the audience we aim to attract. Draw from cooperative best practices to pilot offchain governance experiments that encourage deeper member activation through the learning process.
  2. Blockchain Risk Working Group: Launch the Blockchain Risk Working Group in close collaboration with OpenCover. Define the first version of the Blockchain Risk Map and develop strategies to attract the right core contributors. Collaborate with the Product & Risk, BD, and Marketing teams to ensure a strong launch. Experiment with incorporating offchain governance practices to support contributor coordination.
  3. Develop Industry Group: Develop a launch plan for a new Industry Group aimed at strengthening Nexus Mutual’s position within the broader DeFi and blockchain risk landscape. The group will serve as a structured forum for engaging with key partners, contributors, and thought leaders across the ecosystem. Responsibilities include setting the group’s scope and purpose, establishing criteria for membership, identifying priority topics and collaboration opportunities, and aligning with Product & Risk, Business Development, and Marketing to ensure strategic relevance and visibility.
  4. Governance Reading Group: Coordinate the reading group with a renewed focus on sharing the knowledge and expertise gathered by the core group over the past year.
  5. Support content development, newsletter re-structuring and insight generation for the wider community: Collaborate with the Marketing team to revamp newsletters, launching dedicated editions for Governance and Risk. The Community team will focus on supporting the bi-annual team roadmap special issues, as well as regular publications—one on Governance and another on DeFi & Risk.

Ongoing responsibilities

  • Run events, design and program community-building campaigns, and cohort-based initiatives to activate and engage members
  • Build trust through consistent educational content, including certifications and learning tracks
  • Champion governance literacy and participation through research, design, and regular updates
  • Coordinate timely ecosystem comms—governance, roadmap, DAO initiatives—across X, Discord, and forum in sync with Marketing
  • Support long-term engagement with rebranded newsletters (e.g. The Hedge), community-led working groups (e.g. Blockchain Risk WG), and trust-focused governance experiments

Team

Head of Community (FT). Sem leads community management, strategic content production, and coordination across social and governance channels. Crafts high-context, targeted content to drive engagement and understanding. Conducts ongoing research and implements improvements to member experience across platforms like Discord and the governance forum. Supports and often drives knowledge management, governance literacy efforts, and cross-functional project execution to strengthen trust, participation, and long-term community health.

  • Bio. Sem joined Nexus Mutual after contributing as a part-time community support staff following DeFi Summer, drawn by the protocol’s ability to deliver real utility through decentralized risk sharing. She focuses on launching mission-aligned initiatives designed to increase brand trust and to foster long-term member engagement—such as the Governance Reading Group, DeFi & Risk Learning Group, and soon, the Blockchain Risk Working Group. Sem brings a background in venture capital, fintech product management, organizational design, and human-computer interaction research to help scale community-powered systems.
R&D team

Purpose

The Research & Development team tackles complex challenges within the protocol and broader ecosystem. Their goal is to decentralize the problem-solving process, enhance transparency, and attract skilled contributors who are eager to address difficult problems.

Priorities

As the main priority of Nexus Mutual becomes Cover growth, the priorities of the R&D team are to help with growth initiatives where possible and also to ensure that the protocol can cope with target growth.

  • Product & Protocol

    • Pricing input on new products using actuarial expertise
    • Support on design and edge cases for new technical products
    • Business-side design and for Engineering-heavy projects as required

  • Dune Analytics

  • Enhance Coverage of Protocol Activity - continue expanding dashboards to reflect evolving product lines and ecosystem changes
  • Improve Data Quality and Speed - optimise queries to ensure fast load times and accurate reporting
  • Cross-team Research & Support - provide analytics and reporting support to Foundation, Business Development, Marketing, and external partners to drive growth initiatives
  • Advance Open Source Transparency - maintain and expand contributions to Dune Spellbook to cover all critical areas and protocol upgrades
  • Automation & API Integrations - increase usage of Dune queries as API endpoints to deliver data directly into UI and other DAO tooling
  • MCR calculation
    • Can’t be deprioritised anymore. Much harder to change when we’re at Capital Pool ~= MCR compared to changing now when we have a buffer
    • R&D to deliver v0 calculation & plan for implementation

Ongoing responsibilities

  • Maintain Dune dashboards on an ongoing basis and adapt them quickly to any protocol changes. If necessary, create new dashboards to capture new elements of protocol.

Team

  • Head of R&D (PT with the DAO alongside Foundation role): Rei

    • Description. Responsible for leading projects, managing contributors, working with DAO and Foundation members to increase participation in research, analytics, protocol design and product design.
      • Bio. Has served as Head of R&D since Q1 2023. Began working on Nexus Mutual in May 2018 as the first full-time employee, covering economic design, legal set-up, actuarial modeling, documentation, and early business development. Advisory Board member since February 2020. Previously qualified as a UK actuary, held a variety of back-office and front-office corporate roles in reinsurance and brokerage.

  • Dune Wizard (FT): Tomasz

    • Description. Responsible for writing SQL queries in Dune, capturing accurate current and historic information across the Nexus Mutual smart contracts.
    • Bio. Experienced Data Engineer specializing in analytics engineering with a wealth of hands-on experience contributing to the Dune Spellbook repository. Proficient in SQL, dbt, and Python, with a keen ability to build robust analytics dashboards utilizing platforms like Dune Analytics and Power BI.
Marketing team

Purpose

The Marketing team is responsible for growing Nexus Mutual’s brand awareness, engaging target audiences, and driving new member growth. Their work includes planning and executing marketing campaigns and conferences, creating and distributing content, and managing the Mutual’s various marketing channels.

Priorities

The marketing team is focused on increasing awareness of Nexus Mutual cover options, educating people on why coverage is important, and ultimately driving growth and adoption among investors, institutions, and partners.

Ongoing responsibilities

  • Branding & positioning
    • Ongoing refinement of the Nexus Mutual brand through projects like updating the website and tailoring content to different audiences
  • Content, social & email
    • Building strong relationships with our community through relevant content on owned channels such as direct web traffic, social, and email
  • Conferences & events
    • Fostering IRL connections by planning and staffing events around the world
  • Paid ads & PR
    • Using targeted ads and PR to help connect with our ideal customers and partners
  • Partner marketing
    • Supporting our partners through co-marketing and events
  • Expanding marketing team
    • Adding support for our marketing output with contractor help for content, PR, and paid ads

Team

Director of Marketing (FT). Phil is responsible for developing and implementing comprehensive marketing strategies to increase brand awareness, engagement, and generate leads for our B2B and B2B2C products.

  • Bio. Phil joined Nexus Mutual in July 2024 and has over 10 years of experience ranging from startups to Fortune 1000 companies. Prior to joining Nexus Mutual, he was the Content Communications Lead for Unstoppable Domains, a unicorn in the blockchain space. He got into crypto through NFTs at the end of 2020 and has never looked back.

Total DAO team funding requests

The DAO teams are requesting 12 months of funding, which will be distributed on a quarterly basis from the DAO treasury.

In total, the DAO teams request:

  • 980,650 USDC
  • 5,830.00 wNXM

This funding request represents a 38.80% increase in USDC compared to the previous 12-month cycle, primarily driven by higher marketing expenses. The Marketing team plans to expand by hiring additional contractors and part-time staff to support the existing Director of Marketing. Additional USDC is also being requested to scale up event-based marketing at conferences—an area that delivered the strongest results last year. Additionally, the request includes a 136.61% increase in wNXM compared to the previous cycle. This rise aligns with a broader strategy to improve contributor alignment and incentivize DAO team members to drive growth in cover sales over the coming year.

Of note. The DAO Treasury has earned $573,937.62 in commissions and 6,225.74 NXM ($356,610.38) in staking rewards during the last funding period. The total DAO Treasury earnings during the last funding period was $930,548.00. If DAO commission earnings in June and July come out to the average monthly earnings year-to-date, another $124,882.36 will be generated before our current funding period ends. In total, those earnings offset the cost of the DAO teams funding request from August 2024 to July 2025 and also provided an additional $83,600.00 of earnings for the DAO Treasury. If our projections about June and July commissions is accurate, the total earnings added to the DAO Treasury will be $208,482.37.

Based on past earnings, the DAO Treasury earned $69,966.33 in median monthly commissions. On an annualized basis, this represents $839,595.90. Assuming the same staking rewards earnings, the Mutual can expect 6,225.74 NXM ($356,610.38) over the next year. These two earnings sources are projected to offset this budget request by $1,196,206.28, which would result in a net reduction to the DAO Treasury of $111,753.72. Kpk’s management of Nexus Mutual’s DAO Treasury assets should offset the reduction, while offering a net increase at the end of the proposed funding period.

If the Foundation and DAO teams are successful in scaling cover sales, the commission and staking earnings will be higher and completely offset the DAO teams funding request for the August 2025 to July 2026 period without taking kpk’s investment earnings into account.

RFC status

  • Open for comment from 22 May–5 June

NMDP review period

If no substantial comments are received, this funding proposal will transition to a Nexus Mutual DAO Proposal (NMDP), which will open for comment from 6 June–20 June.

After the review period, this NMDP will go to a Snapshot vote from 23 June–27 June.

We look forward to the community’s review and comments!

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Thanks @BraveNewDeFi

Full support from me on this.

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