NMDP 10: DAO Teams Budget Request (Aug 2025 to July 2026)

NMDP 10: DAO Teams Budget Request (Aug 2025 to July 2026)

• 12-month funding request: 980,650 USDC + 5,830 wNXM
• Funding period: 1 August 2025 to 31 July 2026
• NMDP Snapshot voting period: 24 June–28 June

Overview

In the last year, the active DAO teams–Community, Research and Development (R&D), Marketing and Product and Risk–have worked on behalf of members and focused on the priorities outlined in the NMDP 7: Q3 & Q4 2024 | DAO Teams Budget Request Proposal forum post.

Now that this annual funding period is coming to an end, we, the DAO team leads, have outlined the proposed teams, their current priorities, and the DAO teams’ 12-month budget request in this proposal.

Mission and Values

Nexus Mutual is on a mission to provide onchain protection against crypto risks and beyond. Since 2019, the Mutual has sold more than 10,000 covers and protected over $5.8B worth of crypto assets against onchain and offchain risks.

DAO team contributors work to ensure the long-term sustainability of the Mutual. To achieve this shared mission, our actions reflect our core values.

• Trustworthiness. We pay claims. Our members have already voted to approve over $18 million to those who lost funds. Our reserves are owned by members and we manage risks to ensure there is always enough money for claims, so members can be confident in our cover.
• Egalitarianism. We’re a mutual which means we’re owned and governed by our members—and almost anyone can become a member. We believe that everyone should be able to find the cover they need and anyone else should be able to provide that cover.
• Integrity. Nexus Mutual was founded to help protect anyone against a wide variety of risks. That has been our guiding vision since day one. Honest participation in the Mutual’s governance is rewarded. Members will always own the Mutual's assets, review the validity of claim requests, and vote on claim outcomes.

Funding renewal for existing DAO teams for August 2025 to July 2026

For each DAO team's review of purpose, priorities, and ongoing responsibilities, see the complete proposal on the Nexus Mutual governance forum.

For a retrospective review of each DAO team's performance in the August 2024 to July 2025 funding period, see the retrospective analysis posted on the Nexus Mutual governance forum.

Total DAO team funding requests

The DAO teams are requesting 12 months of funding, which will be distributed on a quarterly basis from the DAO treasury.

In total, the DAO teams request:

• 980,650 USDC
• 5,830.00 wNXM

This funding request represents a 38.80% increase in USDC compared to the previous 12-month cycle, primarily driven by higher marketing expenses. The Marketing team plans to expand by hiring additional contractors and part-time staff to support the existing Director of Marketing. Additional USDC is also being requested to scale up event-based marketing at conferences—an area that delivered the strongest results last year. Additionally, the request includes a 136.61% increase in wNXM compared to the previous cycle. This rise aligns with a broader strategy to improve contributor alignment and incentivize DAO team members to drive growth in cover sales over the coming year.

Of note. The DAO Treasury has earned $573,937.62 in commissions and 6,225.74 NXM ($356,610.38) in staking rewards during the last funding period. The total DAO Treasury earnings during the last funding period was $930,548.00. If DAO commission earnings in June and July come out to the average monthly earnings year-to-date, another $124,882.36 will be generated before our current funding period ends. In total, those earnings offset the cost of the DAO teams funding request from August 2024 to July 2025 and also provided an additional $83,600.00 of earnings for the DAO Treasury. If our projections about June and July commissions is accurate, the total earnings added to the DAO Treasury will be $208,482.37.

Based on past earnings, the DAO Treasury earned $69,966.33 in median monthly commissions. On an annualized basis, this represents $839,595.90. Assuming the same staking rewards earnings, the Mutual can expect 6,225.74 NXM ($356,610.38) over the next year. These two earnings sources are projected to offset this budget request by $1,196,206.28, which would result in a net reduction to the DAO Treasury of $111,753.72. Kpk's management of Nexus Mutual's DAO Treasury assets should offset the reduction, while offering a net increase at the end of the proposed funding period.

If the Foundation and DAO teams are successful in scaling cover sales, the commission and staking earnings will be higher and completely offset the DAO teams funding request for the August 2025 to July 2026 period without taking kpk's investment earnings into account.