NEX tokenomics AMA

Hi, Nash Community!

We are very pleased to publish our plans for the future of the NEX token.

We’re confident the new NEX tokemonics and improved token infrastructure will make NEX attractive to all the customers we’ll be acquiring next year, and will see existing holders benefit from the growth of our business :rocket:

Designing these tokenomics has been a long and complicated task. We’re sure you will have questions about some of the details, and will be happy to provide more details on our thinking.

This AMA is an opportunity for you to pose your questions about the new tokenomics and Nash’s future plans. Since we can already anticipate a few questions, I’ll provide answers to those below.

This thread will be locked at 17:00 CET on Friday 17 December. Please make sure to post your questions by then. We will respond as soon as we can next week.

Regards,
Kellogg

Why has the profit share from new products been set at 10%? The Layer-2 exchange was offering up to 75%.

The original design of the NEX token is not appropriate for our new products. There is simply no viable business model for us that involves sharing 20% of company revenue, let alone 75%. In order to grow, Nash needs profits to re-invest.

Nash’s goal here is the same as that of the community: we want the value of the NEX token to increase. However, if we choose to share 75% of company revenue, the value of NEX will be zero within a few years because Nash will cease to exist. The best way to increase the value of the token is to tie it to all of our new products, make it attractive to new users and then to work on growing our userbase. This is exactly what the new tokenomics does.

Nash has carried out detailed financial modelling and determined that a 10% base profit-sharing level is viable, giving room for additional profit-sharing and fee reductions as a part of our referral program and ongoing specials. A 10% profit-share, with no staking or other actions required from investors, is a very generous proposition both in comparison to stocks (which usually sit around 4–6%) and other crypto tokens.

We understand that the 75% figure associated with the Layer-2 exchange has set expectations very high. However, we ask the community to be realistic – both in terms of business sense, but also when comparing our offering to other tokens that are currently on the market. NEX compares very well.

When will the new tokenomics go live?

The new functionality depends on utilizing the Polygon Layer-2 network, which will be integrated into Nash early in Q1 2022. We will prioritize launching the functionality described in the tokenomics article as soon as possible after Polygon is live.

Why did you not try to make a new utility token to list on major exchanges?

We considered the option of a utility token, but this has its own complications. Besides token swap mechanics, we would need regulatory approval for our plans, which could take at least until the middle of 2022 (and might not be granted). We would also be abandoning the core attractive property of NEX: profit-sharing. This is the strongest mechanism for guaranteeing that the token has value, tying it to our new products and allowing it to reflect the growth of Nash as a company. We have hence chosen to stick to our original vision and double down, sharing profits from all core products while taking advantage of NEX’s security status to run profit-sharing special promotions and a related referral program.

We believe the measures outlined in the tokenomics article to make NEX easier to trade on secondary markets will offset the issue of liquidity and accessibility.

What influence have potential Series A investors had on the design of the tokenomics?

None. Nash is no longer planning a Series A fundraise in the immediate future. Our current runway is more than sufficient for achieving our medium-term goals, so fundraising is not a priority. We will carry out a Series A when we believe one is necessary, primarily with the objective of obtaining investors’ expertise.

I still have NEX locked in stakes, but staking isn’t necessary to receive the new rewards. Can I unstake?

No, unstaking is not possible. Nash cannot change the original NEX token agreement pertaining to the Layer-2 Exchange. Staked tokens are locked in an immutable smart contract. When staking NEX, users checked multiple boxes confirming that they understood what they were doing, including a box stating that they understood dividends to be proportional to the adoption of the exchange.

All staked NEX tokens count towards the new reward schemes, so stakers are not being excluded. They continue to receive dividends from the Layer-2 exchange, in addition to all the new planned rewards.

15 Likes

The new tokenomics plan is very good. I actually like how Nex also acts as a utility and I prefer putting more functions into Nex rather than creating a new utility token. I only have one criticism/suggestion regarding the 10% profit sharing fee.

Would you please consider grading the profit-sharing based on the amount of Nex a user has, similar to the Earnings referral structure?

For instance, every 1000 Nex would raise the profit sharing rate between 0.5-1% with a cap at 10.000 Nex so the raised rate max would be between 5-10%.

This would further incentivize people buying more Nex and a 10K cap would ensure these benefits are not reserved for whales and the wealth and opportunity is distributed as wide as possible to all who support Nash. Longterm, the Nex price would probably make the 10K cap unreachable for the average guy but not for the people that supported and believed Nash today and in the early days.

Other than that, I fully support the new tokenomics. Excellent job guys!

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What are the future plans for the exchange? Is there a chance that it will cease to exist? If staking only brings you profits from the exchange, then I am not so sure if I should still be staking my tokens.

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As the L2 exchange has been put in the freezer for an unspecified time, what would be the reason to stake NEX at this moment? Are there things (involving the L2 exchange) that people whose stakes will only come available in 2023, can look forward to?

This is being said : " All staked NEX tokens count towards the new reward schemes, so stakers are not being excluded. They continue to receive dividends from the Layer-2 exchange, in addition to all the new planned rewards." , so may we extrapolate from this that the dividends from the Layer-2 exchange will become more substantial?

PS: It’s not clear from my questions above, but I’m hyped about the new tokenomics :wink: Nice work and really well thought out!

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Fully support everything presented in the new token economics :handshake:

Will Nash participate in providing liquidity for NEX? (if the answer is “NO” please explain why not?)

Will there be a simple option to convert my dividends into NEX? (Also dividends from the exchange)

Is splitting NEX into 10 or more parts an option? (for NEX to look more affordable, for example after 100X from current price)

Thank you :handshake:

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Thanks, already feels like Christmas today! :rocket: :rocket: The new tokenomics feel well thought through. I do appreciate them.

Still I do have the one or the other question:

  • Is the new referral program applied on already referred users? This would be a kind gesture to us OG nash hodlers

  • How will the referral program (1% annual interest) behave if the amount of a referred user is fluctuating month to month (deposit → withdraw some coins → deposit → withdraw more coins → …)?

  • Could I possible trick the referral system by sending NEX from account A to account B as it reads like there is no holding time required to refresh it?

  • Will new products in the future be similar treated (10% profit share) or benefit nash hodlers on a individual basis (like the cashback) - which either fits better for the product?

  • Profit = Revenue - Costs: Are only the occurring costs of the revenue stream itself considered in the calculation and will it be visible in the payout how much one revenue stream contributed to the overall payout?

  • L2 Exchange: To determine in the future if I want to stake my tokens for the L2 dividends or the Liquidity pools can you please draw a picture of the best case and worst case scenario of the exchange by the end of 2024

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I would be interested to learn more about this. There should be at least some retroactivity in the referral program because no retroactivity would mean we would actively postpone referring new users until the referral program is put in place.

Thanks for this AMA.

I would like to know, how potential NEX investors (who want to benefit from profit sharing of the earnings product) should be able to do their Due Diligence on the token, when there is no official data of the underlying (earnings) pool size is available?

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Thank you for your hardwork, I appreciate the efforts to not lay down NEX.

My 2 cents ;

  1. Will there be a simple scheme for profit share? There was an example about NEX L2 rewards for staking 1000 NEX at an arbitrary constant volume. This scheme/example will close all FUD and speculation ways about new system. This is important IMHO.

  2. I understood that there is a smart contract and 24M staked tokens will not be unstaked. This is ok, but with new approach being a new Nash user or being a first-day supporter or even being a years staker, is now equal. I mean, there should be more extras for users who are staked their valuable tokens for years. This makes a bit disappointment actually. As you can foresee, new users will not stake their tokens unless exchange dividends are meaningful.

Thank you for all again!

Keep up the good work.

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In the article, there are mentions of “profit share” percentage

  • 10% proportional profit share from our earnings package management fees
  • 10% proportional profit share from our fiat gateway fees
  • 10% proportional profit share from our DEX market fees

Can you give us an estimate of the profit share in percentage of:

  • Aave/anchor earnings TVL
  • Fiat gateway volume
  • DEX market volume

Thanks

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Even at the risk of repeating the topic - I find the topic of the referral program too important to be allowed to go down!

The referral program sounds good and I think it will be a great incentive to attract new customers.

BUT what about all the users who have supported and recommended Nash for years? That is not an unimportant part. For me alone, this would affect 11 people who use Nash through me, hold Nex and will also use earnings and other services in the future.

Will it be possible to name the referred users in order to be rewarded afterwards for their loyalty and trust? I’m also specifically talking about the people who were recruited prior to the very first referral program.

With this point stands and falls, my joy with the new program. If my old recommendations should not be taken into account, then I get rekt.

My proposition:
All Nash supporters can report their old, referred contacts to Nash within a specified period of time, for example one month.

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There wasn’t any referral program for Earnings when you (we) referred other users. If you bought an item in a supermarket and the next day this item was on sale (discounted 40%) you could not complain that you bought it yesterday at full price and demand a refund.

What I asked for is since there is a delay between the announcement of the referral program and the start of the referral program will the users we onboard in the meantime (today or some specific date in the near future) be counted in the referral program. If not, there is no point in us referring other users at this moment. If yes, then some degree of retroactivity will be used. But I am not talking about retroactivity before today, that would be akin to the supermarket analogy.

Your comparison of the supermarket doesn’t work!

But I’m not here to discuss, but to express my opinion and put the question to the Nash team.

  1. Series A appears to be on the back burner. Previously, it was suggested that Series A raise would enable Nash to expand to other jurisdictions - is expansion to other regions tied to Series A at all, or are they independent?

  2. Has Nash talked to large investment groups dangling their 13.5% stable APY product? Seems like a large B2B market is available with new Earnings product(s).

  3. What is the biggest hurdle to overcome in order for Nash to truly explode in user base?

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I like the new Tokenmodel. For me is the most important thing that Nash can survive in the long term as a true believe from beginning I miss some bonuses for long term holders.

I think it’s a bad thing in the business world that long term users don’t get any benefits. The focus on new users is great but don’t forget the long term users :).

I think it would be nice if some long term stakers get for example more % for every 1 year stake completed. They will get 1% more to the 10% and maybe the cap is 20% or less.

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I am also interested to know this and the reasons behind it if possible. If delaying the Series A also means delaying further jurisdiction expansion, what instead is the priority for the near term?

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  1. "DEX market fees will be collected on a monthly basis and consolidated as stablecoins. Dividends from these fees will then be paid out on a daily basis over the following month. NEX will no longer offer a fee reduction on DEX markets as a default utility. "

does this mean Nash will offer 0.40% flat fees…

secondly what is the logic of paying daily payouts for the previous month, rather it is better to payout in one go every month.

  1. Programming the new tokenomics is going to be difficult. how is nash going to acheive that…

  2. Marketing tokonomics is going to be complex as it is very difficult to understand, hope Nash realizes the same and has a plan to simplify it for regular users.

Tnx for the new tokenomic and understand everything and happy with the outcome.
My only question is:

All users receive the interest bonus on their friend’s balance
for 1 month500 NEX in your wallet: Receive the bonus for 3 months
1,000 NEX in your wallet: Receive the bonus for 6 months
2,500 NEX in your wallet: Receive the bonus for 12 months
10,000 NEX in your wallet: Receive the bonus for an unlimited time.

Why do you guys jump from 2.5k to 10k? It’s a big gap between. Why not 5k NEX 24 months and 7.5k NEX 36 months?

There are enough people who have allot more then 2.5k NEX but less then 10k NEX

Thanks in advance!

12 months to unlimited time is a big jump as well. If anything, its too low for a LIFETIME reward.
Id like to see it go one more step and top 500 NEX holders (or some sort of number that adjusts with price that makes sense) Encourage competition to stay in the top to keep those rewards enabled.

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Why is nash using Polygon instead of N3? What is the point of having a N3 node if you aren’t going to use it? When will NEX be migrated to N3?

Flamingo wants to offer fiat gateways in the future, will nash reach out to them and begin a partnership to offer them such services? Will nash work with Flamingo to list the NEX token in some form? One of the things holding back Flamingo is lack of Ledger support, nash claims to be just as good as a Ledger, can nash partner with Flamingo to offer a safe way to stake on the Flamingo platform?

Will nash start spreading to the United States soon? I want to use your services as a business bank account in the U.S but its looking like I won’t be able to and will have to look elsewhere.

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