What Is Nexus Mutual?
Nexus mutual identifies itself as a Peer-To-Peer discretionary mutual entity that tries to align incentives through a smart contract code, which aims at curbing the unbalanced relationship between the large institutions and their customers. It adopts the use of blockchain technology and Ethereum to solve the inefficiencies facing the insurance industry such as lack of trust between the customers and the insurer. The platform eliminates the need for insurance companies by allowing people from anywhere in the world to be able to share insurance risks.
The platform’s product is the smart contract cover, which will cover “unintended code usage.” This means that it can cover someone who has suffered financial loss on the contract and not only the person who purchases the cover. Nexus mutual has plans underway to provide more insurance products such as earthquake cover.
Nexus Mutual NXM Token ICO Details
Its members who decide what claims are valid and which ones are not solely run the organization. Membership is through purchasing of the NMX token. The token is ERC20 compatible and has a continuous token model, which means that tokens can be purchased at any time, but at varying prices, as compared to other tokens which have a fixed purchase period, instead of holding an ICO. Membership is non-restrictive by location and anyone in the world can join.
NXM Token Blockchain Shared Insurance Risk Uses
Tokens holders can use the tokens in the following ways:
- Exchanging them for smart contract covers by burning them
- Voting on issues such as governance and future development in Nexus Mutual
- Participating in surplus distribution by locking their tokens for a certain period of time
- Using them as a bond in order to participate in claims assessment and thus earn more tokens
Claims assessment through use of the blockchain technology can work through two approaches: crowd-sourcing information and assessing the claims using a voting mechanism or using an oracle that could be a trusted off-chain information provider.
Once a membership fee is paid, it goes directly to fund the risk pool, which covers the claims of the members. In some instances, the risk pool can be used in funding future development. However, this will only happen if agreed by the members. Membership allows individual to purchase the smart contract cover. It also allows them to make proposal on changes to how nexus mutual is run or even future product developments. Members will also earn rewards for making assessments to claims. In case of any surplus, members will participate in the surplus distribution.
Why Choose Nexus Mutual?
Through the blockchain technology which is a form of a public ledger, members will be provided with claims assessment results, history of token prices and any other information that they may require.
The tokens provide customers with membership to the platform, which will results in them having a vested interest in the success of the mutual.
Reduction Of Costs:
Smart contracts and the blockchain technology that is integrated into the Nexus mutual will result in elimination of governance and regulatory related costs and thus providing trust in a cost-effective way.