Tokenomics Update - August '23

Nexus Mutual Updates Tokenomics
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Tokenomics Update 11/08

  • Education phase coming to a close, although we will encourage members to still ask questions in the education threads before contributing to the parameter discussion.

  • We’re finalising the draft posts for the parameter discussion set to begin early next week. The first discussion will consist of broad not-parameter-specific questions about how quickly we should release liquidity initially and in the long term.

  • We’ve engaged Chaos Labs to provide an economic audit & fully battle test the system in parallel to proceeding with parameter discussion and implementation. Look out for announcements next week.

  • Engineering implementation continues to hit milestones - we’re getting pretty close to fully integrating with the rest of the system, and making good progress on the TWAP implementation. Expecting to be moving on to testing soon.

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Tokenomics Update 28/08

The tokenomics revamp project is moving along smoothly, with the latest updates as follows.

Liquidity Parameter Discussion Updates

  • Part 1 of the liquidity parameters discussion is complete. Last week, members voted on the Snapshot signalling votes and signalled support for the choices below. To review the vote outcomes in detail, see the latest in the following thread.
    • Question 1: Option C: 30% | 46.34% (627k NXM) signalled support
    • Question 2: 1 month | 79.41% (1.1m NXM) signalled support
    • Question 3: 3 years | 76.63% (944k NXM) signalled support
  • The Part 2 discussion will begin this week. The Part 2 forum post will go live tomorrow. See the Liquidity Parameters Discussion | Overview for details on what will be discussed in Part 2.

Development Updates

  • Rei has put together a package that sits on top of the RAMM simulations; this package simulates the impact of the open market on the RAMM as arbitrage opportunities develop between the RAMM and liquidity on DEXs/CEXs. To date, the simulations show that only these arbitrage trades exist and the open market price closely holds to Book Value over time while the RAMM is in operation.
  • The Foundation Engineering and DAO R&D teams had their first call with Chaos Labs to get the Chaos team up to speed on the finer details of the RAMM mechanisms and design. Chaos Labs first deliverable will be a report that should be delivered in 10 weeks’ time. For more information about Chaos Labs’ economic audit of the RAMM, see the following forum post: Nexus Mutual Partners with Chaos Labs for Economic Audit of RAMM Mechanism Design
  • The Foundation Engineering team is progressing through the implementation work, with the engineers currently focused on the TWAP design and gas optimisations.