From messari by Jennifer Obem, Ishraq Alim
Key Insights
- In Q3’24, the total number of packets increased by 118%, reaching over 1 million as NymVPN launched in a public beta. The absence of packet loss or node dropouts indicates the network remained stable and experienced no downtime during the tests.
- NYM's price declined 42.9% QoQ to $0.08 in Q3'24, while ERC-20 token supply grew to 14.4%, signaling deeper Ethereum integration. Additionally, the new NYM Swapper app simplified bridging and staking across Cosmos and Ethereum.
- Total rewards declined 1.3% QoQ in NYM terms and 46.4% in USD, driven primarily by token price depreciation. This reflects the network's shift toward self-sufficiency and reduced reliance on incentives.
- Nym's Caramello release adjusted operator costs and profit margins was launched in September 2024, leading to an initial 2x increase in rewards for high-performing nodes while reducing staker APYs from 12.7% to 10%.
- The Nym team plans further tokenomics updates, with a detailed roadmap was in October 2024.
Primer
Nym (NYM) is an open-source, incentivized, and decentralized physical infrastructure (DePIN) protocol that protects privacy at the network level of any application, wallet, or digital service. As a mixnet, Nym protects against traffic pattern analysis and metadata surveillance. Nym exists as a tool to facilitate private end-to-end internet communication between any application, in addition, Nym built a proprietary application on top of the Mixnet, NymVPN. As such, it is not exclusive to blockchain-related activities. However, the Nym mixnet is closely linked to the NYM token, which runs on the Nyx Cosmos-based appchain to enable permissionless ‘bonding’ of new mix nodes to the Nym network and to pay for mixnet services.
Nym addresses a frequently neglected component of the internet’s technology stack: the transport layer. True privacy is achieved from the bottom up, starting with the transport layer. Both conventional Web 2.0 applications like Telegram and blockchain-related applications such as wallets — and even entire networks — can benefit from Nym's modular network stack. Unlike other privacy solutions, Nym's mixnet employs a unique architectural approach that enhances anonymity proportionally with the growth in network participation. For a full primer on Nym, refer to our Initiation of Coverage report.
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Key Metrics
