The governance token for leading crypto-native reinsurance marketplace Nayms will provide liquidity to capital providers and staking rewards to holders based on insurance pool positions
London, UK, Oct. 23, 2024 (GLOBE NEWSWIRE) -- Nayms, the world's leading crypto-native reinsurance marketplace, has announced the governance token NAYM has gone live and is now available for public sale. The NAYM token capitalizes the Nayms Liquidity Facility (NLF), 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 program 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.
As the insurance industry evolves, tokenization offers a unique opportunity for institutional investors to diversify their investment portfolios and capitalize 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 tokenization, 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."
Reinsurance is a mechanism where insurance companies transfer portions of their risk to other insurance companies, known as reinsurers. This process helps insurers manage their risk exposure, stabilize their financial performance, and maintain capital efficiency. 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. 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.
Nayms is helping to create a fair and transparent financial system while proactively shaping the future of on-chain finance. Nayms has played a pivotal role in transforming the tokenized asset industry by bridging traditional insurance markets, insurtech and blockchain technology, unlocking access to over $2 trillion in alternative capital through the tokenization of real-world insurance programs. By accepting stablecoins and fiat as collateral, Nayms broadens access to tokenized insurance, driving diversification and transparency within the financial system, the first of its kind and one of the few fully regulated in both digital assets (DABA Class F) and insurance (IIGB) under the Bermuda Monetary Authority (BMA).
For more information about the NAYM token sale, please visit https://www.naymtoken.com.
About Nayms
Nayms is the world's leading crypto-native (re)insurance marketplace. The company is registered as a segregated accounts company in Bermuda under the Segregated Accounts Companies Act of 2000 and holds a Class F license under the Digital Asset Business Act of 2018 and a Class IIGB license under the Insurance Act of 1978. Nayms serves as a bridge between alternative capital and a wide range of property and casualty risks. The company provides the technical and legal infrastructure for relevant stakeholders - including insureds, insurers, brokers, and underwriters - to come together to capitalize and transfer risk on-chain. Built on Ethereum and Base, Nayms' diverse team uses smart contracts to enable on-chain insurance placement and crypto-native transactions for collateral, commissions, premiums, and claims.
About NAYM
NAYM is the governance token of the Nayms marketplace, designed to capitalize the Nayms Liquidity Facility (NLF). The NLF functions as a third-party capital provider, selectively offering capital to insurance programs underwritten by Nayms. Through these investments, the NLF seeks to earn distributions, which are reinvested to generate rewards for NAYM token holders. Holders of NAYM can actively engage in governance by participating in proposals, discussions, staking, and voting. Active involvement in the governance process not only contributes to the positive performance of the marketplace but also allows participants to receive rewards from the NAYM governance pool.
NAYM tokens are issued by NAYM Systems Limited, a company incorporated in the British Virgin Islands with business company number 2146249, whose registered office is at Rodus Building, P.O. Box 3093, Road Town, Tortola, VG1110, British Virgin Islands.
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Disclaimer: This press release is for informational purposes only and does not constitute investment advice or an offer to invest.
CONTACT: Nayms at transformgroup.com
