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
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.
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.