What is the reward for staking in Nexus Mutual?
The reward for staking in Nexus Mutual is a share of the fees generated from the risk pool.
The risk pool is funded by members who purchase cover for their smart contracts. The fees are split between the stakers and the members who purchased cover. Stakers receive a portion of the fees generated from the risk pool based on their stake size relative to the total stake size.
The more tokens you stake, the larger your share of the fees will be. Additionally, stakers also receive rewards for participating in governance decisions and providing liquidity to the platform. The rewards are distributed in NXM tokens, which can be used to purchase additional cover or sold on exchanges for other cryptocurrencies.
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