Nym tokenomics

No, NYM is not a privacy coin. It is a token that runs a global decentralized mixnet, which offers network layer privacy for any other coin, wallet, chain, or application in general. A mixnet is an anonymous overlay network, similar to Tor or I2P, that is built on top of existing Internet protocols like TCP/IP and UDP.

Whether Bitcoin, ZCash, or Flow, no current “layer 1 blockchain” provides “layer 0 privacy” for the peer-to-peer broadcasts used in every transaction. Nym can provide network-level privacy for any blockchain and other generic applications. From Bitcoin to instant messaging, developers can build their applications on top of Nym to provide network-level privacy for their users.

Staking is a common practice for tokenized, decentralized networks. It entails temporarily locking up some tokens in order to, for example, signal preference, confidence, or trust by making a temporary economic bet on something. 

In the case of the Nym network, staking means you are temporarily depositing some NYM tokens on a specific node as a signal of confidence in its performance. This stake becomes a trust score for a Nym node and can improve its chances of being selected to route user traffic and earn rewards. 

As a staker, you earn a share of those rewards. You are therefore incentivized to stake on nodes that perform well. By doing so, you are contributing to optimizing a global privacy network!

Staking APY varies significantly depending on which node you stake on. You can browse and search through nodes in the harbourmaster (a new explorer with improved staking coming soon)

Things to look out for:

• Performance score should be between 90-100%
• Versioning: Make sure the node is running up to date software (the latest binary is listed in Harbourmaster)
• T&Cs: Make sure the node has agreed to these, otherwise they will not be selected and will not earn you any rewards
• Stake saturation is when a node is fully saturated, after which there will be diminishing returns. You do not want to stake on a node that is too close to full saturation. Stake saturation point is currently around 1.1mil NYM, so aim for nodes in the mid-range to allow for compounding.
• Stake composition, if possible, check how many other stakers stake on the node. If it has one whale staker, you might be vulnerable to them suddenly removing their stake. 
• Delegations program participant: If you are still in doubt, a safe bet is always to look at whether a node is in the official Nym Delegations Program. If yes, you can rest assured they meet basic performance and config requirements. 

NYM is available on a number of exchanges, including native NYM on Bitfinex on Kraken, and ERC-20 on Bitfinex, Bybit, Gate.io, and HTX.

You can also get native NYM tokens by joining Nym community channels and earn token by contributing to the seasonal challenges and missions.

Yes, NYM is perfectly legal and available on a number of reputable exchanges. Nym Technologies has a registered prospectus for the token in Switzerland. Nym Technologies is also based in Switzerland and fully compliant with Swiss law.