NEX tokenomics AMA

[Kellogg]

@Radu

This means that only bonus is expiring? Or receiving the dividends in general after the specified time below when you are holding less then 10k NEX?

The part of the tokenomics article you quoted only relates to the referral program.

[Kellogg]

@DrJ

Would indeed be nice to get estimations/calculations. And I would also like to have an explanation on “package management fees” → is this part of the profit that goes to the management team? (so 90% to management team, 10% to nex holders?)

Yes. Each earnings offering (e.g. Aave, Anchor) is a package. Nash takes management fees on those packages – with slightly different models depending on how the packages work. Once we subtract costs for running each service, 10% of those fees will be allocated to NEX holders. The rest goes back to the company to fund further development, marketing, etc.

[Kellogg]

@ca1ab1yau

A stock dividend “which usually sit[s] at around 4-6%” is expressed as a percentage of stock price, not as a percentage of profit. So you did not make an apples to apples comparison with 10% vs 4-6%. Please clarify.

I’m sorry if this wasn’t clear. The comparison between NEX and stocks is indeed difficult, and yes, the 4–6% refers to the base price of the stock, not the company profit share. It’s up to the market to price NEX according to the rate of dividends provided. However, we believe that the model we use is very generous when you contrast us with traditional stock companies. For one thing, such companies will often pay dividends from profits after all company expenses are taken into account. This can, in theory, make it look like they are paying a high profit share. However, if we did this, we would not be paying any dividends until achieving profitability. With NEX, we share the profit from each revenue stream directly after basic operating costs like smart contract fees are subtracted. Nash is still growing, after all.

[Kellogg]

@Encephalopath

"Does USDC generation for NEX token dividend distribution or exchange of corporate profits (90%) to legal tender go through the Nash matching engine (max dividend 75% share)?

No.

@Encephalopath

In addition, does it qualify for the 10% share of the Nash Fiat Gateway fee?

No.

[Kellogg]

@con322

Is there ever going to be a problem with NEO 3.0 when tokens are staked on the old NEO network?

Has the team done a risk assessment regarding NEO/NEO 3.0? Does NEO add more technical debt than it’s worth at this point is it not removing NEO completely when possible to focus fully on ETH, Layer 2’s and other L1’s that have more traction such as AVAX, Terra etc

We foresee no problems with NEO 3.0. We don’t plan on removing NEO functionality. The upgrade is being worked into our internal product and delivery timeline.

[Kellogg]

@Trust_Yourselves

Can you please define the ‘earnings package management fees’?
I understand the key revenue from Earnings is to provide a lower APY than the original layer of each yield protocol and to pocket the balance. For example; Anchor offers 20% APY but Nash can offer 16% and pocket the remaining 4%. Please confirm this is the ‘earnings package management fees’ and not the Fee which are charged for the user to Add and Withdraw funds from earnings?

Yes, correct. See the above response to DrJ.

@Trust_Yourselves

I understand NEX can no longer be seen as a stand alone revenue sharing token, but do you think NEX has the capability of achieving an APY that will match the APY’s from the likes of the Anchor Protocol (15%+)? (solely talking dividends)
My guess is part of the new token economics was to make it difficult to compare the APY from NEX to the APY on Earnings accounts due to the fee-saving options offered by holding NEX.

In your terms, APY depends on what the current token price is in relation to dividends. Since that figure depends on the token price, it depends on what the market wants in terms of dividends, and how they relate to the other token functionalities.

@Trust_Yourselves

Who is the Target Audience for Nash app?

Everyone 18+

@Trust_Yourselves

A company named ‘Meow’ is seeing high demand from institutions. They offer 4% stable coin yield.
What are the key milestones Nash need to achieve to open its doors to family offices and institutions?

B2B is a whole different ball game from B2C. Having said that, through introductions from partners and investors, we are in talks with institutional parties to understand their needs / wants and take those into consideration when building our products. When the time is right, we will reach out to institutional clients.

@Trust_Yourselves

How many active users is Nash aiming to have by year end 2022?

Conservatively we estimate between 100–200K users actively using our platform, but we hope to be well above that figure at the end of 2022.

[Kellogg]

@CryptoUK1

Other fiat gateway providers, the likes of Ramp and Transak, are continually expanding the tokens that they offer and taking advantage of the growing ecosystems in crypto, whereas Nash has yet to make any real headway.

Will we see a change in that regard or is the focus mostly tied to Earnings? Perhaps something for the future?

The fiat gateway is integral to our offering. We believe our product offering is not only a different beast but also a much better fit for the average consumer than the competitors you mentioned. We will, of course, be marketing it – but we think that Earnings has more immediate appeal to a mass audience than the opportunity to invest in crypto at great rates. Remember, also, that Earnings is just part of the upcoming “superapp”: we’ll be offering a cash account alongside crypto earnings and investments. We’re just focusing on Earnings for now until we have all that functionality in place.

[Kellogg]

@BananaMan

The first question my friends & family will ask me will be if their funds would be safe. Their risk tolerance is much lower than the average crypto user. I strongly believe they would much prefer their funds be insured, but paid a lower apy to compensate for this. Will future iterations of Nash Earn offer this?

We’re looking into it.

[Kellogg]

@AllStars

Would it be viable to offer that extra 1% on earnings for the early accounts in case these have say X NEX, which may be a number higher than 10,000…say 15,000, 20,000 or 50,000 NEX?

This isn’t an option, I’m afraid.

[Kellogg]

Thanks, everyone! That’s all for now.

I wish you all the best for the holiday season. I hope you’re all looking forward to everything Nash has in store for 2022. I certainly am!