NYM (NYM) Primer

Nym (NYM) is an open-source, incentivized, and decentralized physical infrastructure (DePIN) protocol that protects privacy at the network level of any application

Nym, an open-source protocol that provides privacy at the network level for any application, wallet, or digital service, is deploying a physical infrastructure (DePIN) protocol with an in-built privacy token. It is an unclaimed part of the internet's technology stack.

The protocol is used to build a private and decentralized network on any public chain. It can be used to build anything from DeFi protocols to messaging apps. The protocol is also modular, allowing developers to choose the components that best suit their needs.

Nym is a mixnet that provides protection against traffic pattern analysis and metadata surveillance. It is a tool that enables private end-to-end internet communication between users and the web with strong legal and technical metadata protections. In addition, Nym is building a proprietary application on top of the mixnet, which is a VPN service. As such, it is not exclusive to blockchain-related activities.

The NYM token serves the following functions for the Nym mixnet and the underlying appchain:

The token and the appchain blockchain serve the economic function of the NYM mixnet, the DePIN protocol responsible for private communication.

This quarter, NYM’s price bounced back up after a steady decline in Q2 and Q3. NYM price increased 32% QoQ from $0.08 to $0.10. The market cap also grew 32% QoQ, closing at $84 million. NYM was initially distributed as a native Cosmos ICS-20 token and an ERC-20 token, which were bridged to Ethereum via Gravity Bridge for Coinlist users. At the end of Q4, the ERC-20 NYM supply stood at 120 million, or 15% of the total 807 million circulating supply.

Ethereum ERC-20 NYM can be bridged to native Cosmos NYM through centralized exchanges such as OKX and bridges such as Gravity Bridge.

Ethereum ERC-20 NYM can be bridged to native Cosmos NYM through centralized exchanges such as OKX and bridges such as Gravity Bridge.

Last quarter, Nym Technologies released an NYM Swapper app that allows the exchange of NYM tokens between the native Cosmos-based app chain and Ethereum’s ERC-20 tokens via MetaMask and Keplr wallets. This tool simplifies the bridging process and allows users to easily stake tokens on Nym nodes for rewards and manage delegations across the two blockchain ecosystems.

The protocol provides incentives for operators (who run Nym Nodes or Nyx validator nodes) and those who delegate to these nodes to bootstrap the network and maintain its security.

The protocol provides incentives for operators (who run Nym Nodes or the Nyx validator nodes) and those who delegate to these nodes to bootstrap the network and maintain its security.

The protocol provides incentives for operators (who run Nym Nodes or the Nyx validator nodes) and those who delegate to these nodes to bootstrap the network and maintain its security.

The Nym network is supported by a decentralized and permissionless network of mixing nodes known as mix nodes. The network uses a client-server architecture and is not P2P to enable end-users to use the network without necessarily running a node. The primary purpose of mix nodes is to route and mix traffic through the mixnet securely.

The Nym network is supported by a decentralized and permissionless network of mixing nodes known as mix nodes. The network uses a client-server architecture and is not P2P to enable end-users to use the network without necessarily running a node. The primary purpose of mix nodes is to route and mix traffic through the mixnet securely.

The network selects 120 gateway nodes and 120 mix nodes to be active in each epoch to optimize reward distribution and system efficiency. The number of active nodes can scale with demand, and the parameter can be adjusted through governance (although the Nymtech team initially set it). The selection of active nodes happens once per hour, and the topology changes continuously to ensure that unreliable or poorly performing nodes are removed from the network. The selection is fully decentralized and is based on a mix node's reputation (measured by its total stake in NYM tokens) and performance.

At the end of Q4, the total NYM delegated to mix nodes reached 208 million NYM, up 5% QoQ. In USD, delegated NYM rose from $15.7 million to $21.8 million, an increase of 38% QoQ. NYM holders can delegate directly through the Nym explorer with familiar Cosmos tools like the Keplr browser/mobile wallet or the Nym native wallet.

At the end of Q4, the total NYM delegated to mix nodes reached 208 million NYM, up 5% QoQ. In USD, delegated NYM rose from $15.7 million to $21.8 million, an increase of 38% QoQ. NYM holders can delegate directly through the Nym explorer with familiar Cosmos tools like the Keplr browser/mobile wallet or the Nym native wallet.

In November, Nym initiated a $1 million token buyback ahead of the NymVPN launch. The buyback aimed to reduce token oversupply, which contributes to downward price pressure, and strengthen the Nym treasury. Over the course of a month, Nym repurchased over 10 million NYM tokens, which were then used to fund core goals. The acquired assets were directed toward advancing key initiatives, focusing on continuing network development, forging strategic partnerships, and expanding community programs.

This installment of the Close Up series provides a detailed analysis of the Nym ecosystem in Q4’24, examining the protocol’s economic activity, highlighting key performance metrics, and exploring recent developments within the broader community.

This installment of the Close Up series provides a detailed analysis of the Nym ecosystem in Q4’24, examining the protocol’s economic activity, highlighting key performance metrics, and exploring recent developments within the broader community.

In November,