Collaborations with partner projects to reward Nexus Mutual stakers in both NXM and the partner's native token
Stakers (risk assessors) will deposit NXM and stake on contracts that they think are secure and this, in turn, allows other members to purchase smart contract cover on that system.
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NXM staking rewards
Stakers (risk assessors) are liable for their staked NXM to be burned if there is a successful claim on that smart contract system. But as a reward for staking 50% of every cover purchase price is distributed proportionally among the stakers.
NXM rewards distribution will continue to be automatically distributed on Monday mornings, UTC time. Members can see their rewards appear in their pooled staking dashboard once processed.
When unstaking from a contract, stakers enter a 30-day unstake lockup-period. During this time their stake can be burned and they also still earn NXM staking rewards.
Sponsors provide any amount of their tokens (or any ERC-20), the budget, and also choose the distribution rate.
Budgets can vary as you wish, from experience we recommend at least $100,000 up to around $500,000. Ideally the total budget should ensure rewards run for a minimum of 3-4 weeks. Budgets can be topped up as the sponsor wishes.
The distribution rate is number of tokens per NXM staked per week. We recommend choosing a rate that rewards around $0.20 - $0.30 per NXM staked per week. This gives a good balance between minimising gas costs for claiming and a longer reward period.
How rewards are distributed
Stakers get to claim rewards once per week (round), with rounds starting 9am UTC on Mondays. Claiming continues until the budget has been depleted.