How does staking work in Nexus Mutual?
Staking in Nexus Mutual works by allowing members to lock up their NXM tokens in order to receive rewards.
When a member stakes their NXM tokens, they are essentially committing them to the mutual for a period of time. During this period, the staked tokens are not available for use and cannot be transferred or sold. In return for staking their tokens, members receive rewards in the form of NXM tokens.
The amount of rewards received depends on the amount of NXM tokens staked and the length of time they are staked for. The longer a member stakes their tokens, the more rewards they will receive. The rewards earned from staking can be used to purchase additional coverage from Nexus Mutual or can be sold on exchanges for other cryptocurrencies or fiat currencies.
Staking also helps secure the network by providing additional liquidity and reducing volatility in the price of NXM tokens. Staking is an important part of Nexus Mutual’s governance model as it allows members to have a say in how the mutual is run and how funds are allocated. Members who stake their tokens can vote on proposals that affect how Nexus Mutual operates and can even propose new initiatives that could benefit all members.
