Nym has a perpetual buyback mechanism in place

Nym is now coming to the end of its NYM token buyback which began last month. A perpetual buy-back mechanism is being put in its place for the NymVPN product launch in January 2025.

The buyback of 1M USD in NYM tokens period has boosted Nym’s token treasury by just over 10M NYM tokens purchased at a historically low price-point. This now provides substantial resources to Nym’s Delegations Program to support operators just ahead of the commercial launch. Here’s everything you need to know about the motivations and effects of the buyback.

Why a Nym token buyback?

Nym’s token buyback serves a targeted purpose: to bootstrap the Nym treasury and improve network performance in the lead up to the launch of NymVPN. NymVPN is much more than a VPN: it’s built on a token-incentivized and decentralized network capable of fighting against even AI-powered surveillance. And the NYM token is at the heart of it.

The Nym network is built on a novel form of tokenomics: operators routing user traffic are rewarded in NYM tokens for their work. The goal is that as usage of the app increases with users looking for genuine privacy online, operators will benefit from increasingly advantageous rewards. Optimizing network performance and incentives ahead of commercial launch is thus crucial to the success of the project.

Perpetual buyback mechanism

Nym’s token buyback over the last month has also served to test what will become a perpetual buyback mechanism with the launch of paid subscriptions for NymVPN. Every subscription to the app — whether in fiat or crypto — will automatically trigger a token buy-order and be converted to NYM tokens. This mechanism is the basis of generating anonymous access credentials called zk-nyms. With zk-nyms, all user payments for the NymVPN service will be unlinkable to a user’s usage of the Nym network. This solves a huge privacy problem plaguing centralized VPN services.

Curious about how the NYM token is the center of a novel experiment in tokenomics in which the token is linked to the real usage of a product? Check out Nym’s deepdives on the NYM token flow and its function as a utility token.

Boosting the Nym treasury and Delegations Program

The NYM buyback has boosted Nym’s token treasury at a time, prior to the launch of NymVPN, when the token price has been highly favorable. In the lead up to paying customers, the primary goal of this is to make sure Nym’s token reserves are ample to support the network of independent operators in servicing the network.

30M NYM has already been used to double the budget of the official Nym Delegations Program to a total 70M NYM. The Delegations Program helps bootstrap top quality Nym nodes with stake. These staking rewards will go to the Squad Wealth Fund, an ecosystem fund to support community members active in advancing Nym’s mission for delivering privacy to all of humanity.

Stay tuned for some exciting news for Nym philanthropy to organizations in desperate need for what NymVPN can offer!

What’s next

NymVPN will be commercially launched in January 2025. Check Nym’s roadmap for what to expect before and after launch. But don’t forget that a full and stable NymVPN app is released and still free for everyone to use!

Before the end of 2025, expect updates on the Nym network, NymVPN beta payments, and a new Nym Explorer!

Happy holidays friends, and don’t forget to test, stake, and get ready for launch!