Does staking my NXM tokens on the network increase its value over time or decrease it over time due to inflationary pressures from new token issuance and rewards distribution ?

The answer to this question depends on a few factors.

First, it is important to understand that Nexus Mutual is a decentralized insurance platform built on Ethereum. It uses NXM tokens as its native asset and allows users to stake their tokens in order to receive rewards for providing liquidity and taking part in the network’s governance. Staking your NXM tokens on the network can increase its value over time due to the fact that staking rewards are distributed in NXM tokens, which increases the total supply of NXM tokens in circulation.

This can lead to an increase in demand for NXM tokens, which can drive up its price. Additionally, staking your NXM tokens also gives you voting rights within the network, which can give you influence over important decisions that could potentially benefit the value of your holdings. On the other hand, staking your NXM tokens on the network can also decrease its value over time due to inflationary pressures from new token issuance and rewards distribution.

As more users stake their NXM tokens and receive rewards, this increases the total supply of NXM tokens in circulation, which can lead to a decrease in demand for them and thus a decrease in their price. Additionally, if too many users stake their NXM tokens at once or if too much new token issuance occurs without enough demand for them, this could also lead to a decrease in their price. Ultimately, whether staking your NXM tokens on the network will increase or decrease its value over time depends on several factors such as how much new token issuance occurs and how much demand there is for them.