Governance Proposal: Daily Interest on NEXO and a Final Dividend
You asked for daily interest on NEXO Tokens and, as always, we listened. It is time for the very first NEXO Governance proposal which will allow you to have your say in designing the financial services you need.
On June 7, 2021, every eligible NEXO Token holder will have the opportunity to vote for or against Nexo’s first Governance Vote proposal: Daily Interest on NEXO Tokens.
If the Daily Interest on NEXO Tokens proposal passes, the following changes will occur with immediate effect:
- NEXO Token holders will receive up to 12% interest per annum, paid out daily, on NEXO Tokens held in both the Savings and Credit Line wallets, meaning that NEXO Tokens used as collateral will also earn interest.
- Daily Interest on NEXO Tokens will start with 7% interest for FLEX Terms across all tiers, while those benefiting from Nexo’s Fixed Terms for 3 or 12 months will receive 9% and 12% interest, respectively.
- Аll Nexo clients are eligible for Daily Interest on NEXO Tokens1.
- Daily Interest on NEXO Tokens will substitute the existing, at least once-a-year Dividends program.
- A final Dividend distribution of $20,428,359.89 will be made should Daily Interest on NEXO Tokens be chosen by the community.
- The entire final Dividend will be distributed as a Loyalty Dividend on June 16, 2021 with the official Record Date being 12:01 UTC June 8, 2021, immediately after voting closes.
Should the Daily Interest proposal not pass, Nexo will continue to share 30% of its profits with NEXO Token holders as per Nexo’s existing Dividends program with dividend distributions taking place no less than once a year.
1 Currently excluded from this product are citizens or residents of the State of New York, and users subject to other limitations as may be applicable at times, who place their NEXO Tokens in their Nexo accounts. The Daily Interest on NEXO Tokens is subject to the Nexo Earn Interest Product General Terms and Conditions, as amended on occasion.
What Are the Rates for Daily Interest on NEXO Tokens?
Dividends vs. Daily Interest
At Nexo, we believe in sharing our success with the community. This is why we have, from the very beginning, given back 30% of our profits via our flagship Dividends program through which we have distributed $9.5M to NEXO Token holders worldwide. While dividends have been integral to our company’s development, the community has invited us to explore additional forms of sharing our good fortunes.
Taking your suggestions and the dynamics of our space into account, our team developed the Daily Interest proposal, offering to integrate the NEXO Token into our Earn on Crypto suite and make passive income on our native token more frequent and flexible. This remake of the NEXO Token would enable you to earn up to 12% interest per annum, paid out daily, on all your NEXO Tokens.
By giving all investors equal interest rates regardless of the size of their holdings, we have also made sure that the Daily Interest proposal retains the fairness and inclusivity of our Dividends program, while developing our native token’s untapped market potential by making it more accessible to our global user base and via an even greater number of trading venues worldwide. Furthermore, the new proposal works to eradicate volatility around dividend dates which was a longstanding concern for our community.
Implementing Daily Interest on NEXO Tokens is a big step for us when it comes to further enhancing the utility of our native asset which is why we are asking you to decide whether you prefer Daily Interest or Dividends on the platform. Should you, the token holders, indicate а preference for Daily Interest over Dividends, it would replace Dividends.
- 1 NEXO Token = 1 Vote: Each token you hold gives you one vote, so the more NEXO Tokens you own, the greater say you will have in how the Nexo platform is developed in the future.
- How to Vote: You will be able to submit your vote via the dedicated Vote tab both in the web version of the Nexo platform and the Nexo app. This page will become accessible when the vote opens.
- Vote Date: Voting will open at 12:00 UTC on June 7, 2021 and close at 12:00 UTC on June 8, 2021.
- Quorum: The minimum number of votes to be cast for the June 7, 2021 Governance Vote to be valid is 300,000,000. Should a quorum not be reached, the vote will be considered as failed.
- Simple Majority: If 50%+ of NEXO Token holders vote in favor of the Daily Interest proposal, it will replace the existing Dividends program.
- Implementation Date: If the new proposal is voted in, it will come into force immediately, at 12:01 UTC June 8, 2021, so you will start earning daily interest the next day.
- Requirements: Your NEXO Tokens must remain in your Nexo account until voting closes at 12:00 UTC on June 8, 2021 for your votes to be counted. If you withdraw your tokens prematurely, your votes will be invalidated.
If, for whatever reason, you move your tokens before voting has closed, but still want to cast your vote, simply return your tokens to your Nexo account, resubmit your vote and wait until voting closes.
Important: What If I’ve Been HODLing for Dividends?!
Should Daily Interest on NEXO Tokens be voted in by the community, a final Dividend of $20,428,359.89 will be distributed to all eligible token holders on June 16, 2021 for NEXO Tokens held in both Credit Line and Savings wallets. This ensures those hodling for dividends are not adversely affected by the change. The official Record Date for this Dividend will be June 8, 2021 at 12:01 UTC – immediately after the Governance Vote closes. The entire final Dividend will be distributed as a Loyalty Dividend. However, if the community votes to stick with our current Dividends program, the dividend will be distributed later this year, with details to be provided further on.
The NEXO Governance Vote & the Future
Democratizing finance is one of Nexo’s core missions: We empower people to manage their finances autonomously and cost-efficiently through high-quality financial services. To do this effectively, we need to know what our clients really need and adapt accordingly. Hence the Governance Vote.
The NEXO Governance Vote is a hybrid approach to the governance model used in decentralized protocols. It combines our investors’ vision for the company’s future with our team’s expertise by putting proposals that you want and that we can implement to a vote, ultimately leading to more targeted, functional, and desirable products. In time, we also hope to devise an option for user-submitted proposals.
This new addition to the NEXO Token’s utility will contribute even further to the transparency of our business and the crypto space.
The right to vote and shape the future of the Nexo is brought to you by Nexonomics – the series of upgrades and features for the NEXO Token designed to drive its tokenomics, reinforce its utility, and boost its value in the digital economy. In the space of a few short months the NEXO Token’s utility has grown to include full-fledged Loyalty and Buyback Programs, a specialized Earn in NEXO feature that boosts client’s yields, and, of course, various bonuses and discounts on Nexo services.
This tokenomics overhaul has led to a series of company milestones, most notably the transformation of our native token into one of the fastest-growing cryptocurrencies. And the best part of it all is that we have only scratched the surface of our token’s true potential because Nexonomics is only getting started.
With the vote date just around the corner, get ready to #tokenUp, have your say, and redesign the future of finance with us.