NEXO Introduces First Governance Proposal

By orbithunter | Orbit's Journal | 27 May 2021

On June 7, 2021, every eligible NEXO token holders will be able to vote for or against the first Governance Vote Proposal: Daily Interest on NEXO Tokens. Voting will be open for 24 hours from 12:00 UTC on June 7, 2021 until 12:00 UTC on June 8, 2021.

What will happen if the proposal passes?

If this proposal passes, the following changes will take effect immediately:

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 Tokens.
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.

If the proposal fails to pass, NEXO will continue to share its 30% of the profits with NEXO token holders thru dividends expected to be released in no less than once a year.

Why Daily Interest on NEXO Tokens?

This proposal aims to solve various inefficiencies across the market while simultaneously boosting the use case for the native token. Unlike other assets eligible for NEXO interest, all investors will receive equal interest rates regardless of the size of their holdings, making 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 the community.

How Do I Vote?

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 Wallet 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.