About Wrapped NXM (WNXM)
Wrapped NXM (WNXM) insurance industry has developed over time from a community-based model to an adversarial one where large institutions dominate. It is also inefficient in many areas leading to large frictional costs being borne by customers. Blockchain technology allows individuals to efficiently transact directly with each other and therefore enables the core insurance entity to be replaced. Nexus Mutual uses blockchain technology to bring the mutual ethos back to insurance by creating aligned incentives through smart contract code on the Ethereum blockchain.
Wrapped NXM (WNXM) Before insurance companies existed, communities would group together themselves. They would pool resources to protect individual members from risks they all faced.1 If an unfortunate event occurred the senior members of the community would decide whether to provide assistance or not. All funds raised were used to benefit the members of the community.
Wrapped NXM (WNXM) In developed nations they have largely moved away from this community approach primarily due to the underlying economics of insurance. Insurance economics are driven by diversification. The more individual risks that are pooled together the less capital is required to be confident all claims can be met.2 Scale benefits are significant and community models don’t have the means to access them easily
Wrapped NXM (WNXM)Storage Key Points
|Coin Name||Wrapped NXM|
|Circulating Supply||1,676,964.00 WNXM|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
Wrapped NXM (WNXM) A simple ERC-20 compatible token will be created to serve as the key internal incentive mechanism to bind the mutual together. A continuous token model will be used so that tokens can be purchased at any time but at a variable price. This contrasts to more common ICO type approaches where there is a fixed purchase period with set price change points, followed by a speculation-driven market on exchanges. The token price will vary based on 1) funding level of the Capital Pool and 2) the minimum amount of capital required to support existing covers (which provides a link to business growth)
The capital model determines the minimum capital the fund needs to hold. The funding rules in the next section then reference the Minimum Capital Requirement (MCR) and determine actions such as the token price and redemption restrictions. The capital model will borrow heavily from EIOPA’s Solvency II8 methodology which is calibrated to withstand events in a year with a 99.5% probability, or, in other words, a 1- in-200 year event. This is consistent with many other regulatory standards of nations such as Australia9, Bermuda, Japan, Mexico and Singapore who either have specific targets of 99.5% or are on the way to gaining “equivalence” with the SII regime
Wrapped NXM (WNXM) Nexus Mutual has been set-up as a company limited by guarantee in the UK and will operate under a discretionary mutual structure. Members of the mutual will have a legal right to proportional ownership of the mutual and will also be responsible for providing the guarantee. The guarantee will be set at £1 per member. This means if the mutual was ever to run out of money, each member is liable for a further £1 only.
Why Should You Choose
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Mutual to Replace Insurance
Wrapped NXM (WNXM) are building an alternative risk sharing platform. In the future the plan to offer crypto wallet cover, as well as more standard products, like earthquake cover
No insurance company. Nexus Mutual is run entirely by its members. Only members can decide which claims are valid. All member decisions are recorded and enforced by smart contracts on the Ethereum public blockchain.