Nayms launches governance token

Crypto re/insurer Nayms has launched a governance token and is selling it to the public. 

Bermuda-based Nayms said the NAYM token capitalises the Nayms Liquidity Facility, which takes positions in insurance pools and works with market makers to provide liquidity to capital providers and rewards to token holders.

By depositing into the NLF, token holders receive an increased boost factor on any NAYM tokens staked into the governance pool. As a governance token, stakers can actively engage in the Nayms marketplace in a meaningful way, from how much the NLF should invest in a certain programme to the preferred ratio of NAYM to other NLF assets. In return, stakers receive rewards from NLF performance in recognition of their contributions to the administration of the NLF.

Nayms said tokenisation offers "a unique opportunity" for institutional investors to diversify their investment portfolios and capitalise on the growth of traditional private market asset classes. Nayms' opportunities offer investments into reinsurance for property and casualty (P&C) risks like cyber, errors and omissions, directors and officers coverage, crime and various industry loss warranty products. This exposure is typically only available to pension funds, private equity funds and other major institutional investors. Nayms is making this exposure available to all qualified investors through tokenisation, accessible in their wallets.

“The NAYM token allows anyone to join our global insurance network and participate in one of the largest industries on the planet, but one that is currently still very closed to the largest institutional allocators,” said Nayms Co-Founder and CTO Ted Georgas. “NAYM provides a new model for industry collaboration and cooperation through governance and rewards from active stakers, while also opening up new capital opportunities in untapped insurance markets."

The company said reinsurance expense ratios are typically 5%-10% of premiums. PwC data has shown that blockchain solutions could remove 15% to 25% of expenses, delivering an industry-wide saving of $5-10 billion.

"After one of the most active and deadliest hurricane seasons in recent memory, reinsurance costs will undoubtedly go even higher, driving greater need for innovative reinsurance solutions," Nayms said. "In addition to several casualties, hurricane Helene and hurricane Milton are each estimated to be $50 billion disasters. Efficient and effective reinsurance through these types of natural disasters helps insurance companies quickly and fully transmit compensation to victims without experiencing financial failure themselves. Earlier this year, Nayms launched an industry loss warranty (ILW) contract on Coinbase Ethereum L2 Base, which allowed for a Bermuda-regulated segregated account structure reinsuring against certain weather-related catastrophic events in Florida."

For more information about the NAYM token sale, please visit https://www.naymtoken.com.

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