The NXM token plays a vital role within the protocol and the wider ecosystem. NXM is a governance and utility token backed by crypto assets held in the Capital Pool.
Ownership
The NXM token represents ownership within the Mutual since each NXM token is tied to crypto assets in the Capital Pool. The more NXM you hold, the greater your ownership is within the Mutual.
Crypto Asset Backed
NXM is backed by crypto assets held in the Capital Pool. The majority of the assets backing NXM are ETH and ETH staking assets, with a much smaller portion held in DAI. To see a breakdown of the Capital Pool assets, see the Nexus Mutual Capital Pool and Ownership Dune dashboard.
NXM Token Utility
For Nexus Mutual members, NXM is the key to engagement and voting influence across our ecosystem.
You can use NXM to participate in the Mutual in several ways.
NXM Staking
If you hold NXM, you can participate in the underwriting process as an NXM staker. You can stake your NXM and delegate it to an existing staking pool manager, or you can launch and manage your own staking pool, where you decide how you want to allocate your NXM, what pricing you want to set for each cover product you underwrite, how much capital you want to allocate to a risk, etc. When other members buy cover from a pool where you have staked NXM, you can a proportional share of the cover fees in NXM rewards.
- To learn more about NXM staking, see the Staking section of the documentation.
- To learn more acting as a Staking Pool Manager, see the Staking Pool Managers Hub page
On-Chain Governance
Each NXM token adds to your voting power within the Mutual. When important Nexus Mutual Protocol Improvement Proposals (NMPIPs) are put on chain, you can use your NXM voting power to signal your approval or rejection of the proposed change. Whether there’s a vote on a new protocol upgrade or a strategic decision on how to invest a portion of the Capital Pool, your vote and your voice matters. To learn more, see the 
Protocol Governance Overview page.
DAO Governance
In 2021, members voted to create the DAO Treasury (formerly referred to as the Community Fund). The DAO Treasury is completely separate from the Capital Pool—the treasury assets can be used to funds teams contributing to the DAO and protocol; grants that improve access to cover or improve the member experience; and other initiatives that further development, create awareness, or drive growth for the Mutual. As a member, you can create a Nexus Mutual DAO Proposal (NMDP) to propose a potential use of funds from the DAO Treasury. For NMDP votes, the DAO uses the Nexus Mutual DAO Community Snapshot Space. To learn more, see the DAO Governance Overview page.
Claim Assessment
When loss events occur and claims are filed, you can stake NXM and participate in the claim assessment process. Your participation not only helps ensure fair and swift claim resolutions but also strengthens the trust and reliability of the Mutual. [Link to ‣ ]