What is the issuance and circulation of NEXO coins?

NEXO, the native token of the Nexo platform, plays a critical role in securing loans, earning interest, and offering loyalty rewards to holders.

Nov 16, 2024 at 01:54 am

What is the Issuance and Circulation of NEXO Coins?

NEXO is a digital asset and the native token of the Nexo platform, a leading crypto lending and borrowing platform. NEXO coins play a crucial role in the Nexo ecosystem, providing various benefits to holders and facilitating platform operations.

Issuance of NEXO Coins

• The initial issuance of NEXO coins occurred in April 2018 through a public sale (ICO), during which 560 million NEXO coins were sold to investors.
• The remaining 440 million NEXO coins were distributed to the Nexo team, investors, and advisors.
• NEXO coins are not mined but are issued by Nexo as needed to maintain the token supply and ecosystem growth.

Circulation of NEXO Coins

• The current circulating supply of NEXO coins is approximately 545 million, accounting for roughly 75% of the total supply.
• The remaining 25% of NEXO coins are held in reserve by Nexo and are not currently in circulation.
• NEXO coins are listed and traded on various cryptocurrency exchanges, providing liquidity for holders and facilitating trading activities.

NEXO Coin Use Cases

NEXO coins serve multiple purposes within the Nexo platform, including:

• Borrowing Collateral: NEXO coins can be used as collateral when borrowing cryptocurrencies or fiat currencies on the Nexo platform, allowing users to access instant liquidity without selling their assets.
• Interest Earning: NEXO coins earn interest when held in a Nexo wallet or used as collateral for loans. Interest rates vary depending on the loyalty tier of the user and market conditions.
• Loyalty Rewards: NEXO coins are used to calculate the loyalty tier of users, which determines their access to higher interest rates, lower borrowing fees, and exclusive platform features.
• Governance: In the future, NEXO coin holders may have governance rights over the Nexo platform, allowing them to participate in decision-making processes related to platform development and operations.

Tokenomics of NEXO

The tokenomics of NEXO coins are designed to foster long-term growth and incentivize holder engagement. Key features include:

• Buyback and Burn Mechanism: Nexo periodically uses a portion of its profits to buy back NEXO coins from the market and burn them, reducing the circulating supply and increasing the value of remaining NEXO coins.
• Issuance Limit: The total supply of NEXO coins is capped at 1 billion tokens, ensuring that inflation is controlled and scarcity is maintained.
• Loyalty Tier System: The loyalty tier system encourages NEXO coin holders to maintain a certain balance and actively use platform features to earn higher rewards and benefits.