A new interface will make swapping the native NYM token and the Ethereum NYM token simple for everyone.
The NYM token powers the Nym mixnet, a global system providing layer-0 privacy, and is available across several chains. NYM holders will soon be able to swap NYM tokens, whether they are Ethereum ERC-20 or native NYM tokens on Cosmos, by using a single, easy to use interface.
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Currently, users need command line knowledge, extensions, and a bridging setup in order to swap tokens. But by the end of 2023, this new interface will allow tokens to be swapped from Ethereum to the Cosmos Nym blockchain directly from the Nym Wallet, empowering NYM holders to contribute more actively to the mixnet by bonding and delegating much more easily.
Everyone in the ecosystem will be able to effortlessly swap native NYM tokens on Cosmos for Ethereum tokens and vice versa, drastically improving usability for holders, traders, operators, and delegators.
Nym Wallet: A ‘one swap shop’
Currently the NYM token is siloed between the ERC-20 token and the native NYM token on Cosmos. Token swaps on Nym Wallet, which will be live and usable by the end of this year, will dissolve these barriers by allowing users to painlessly switch between the two as little or as often as they desire.
Right now the NYM token exists on the Ethereum chain as an ERC-20 token, as well as on the Cosmos chain as the native NYM token.
The ERC-20 token is easier to acquire because Ethereum ERC-20 tokens are more readily listed on most exchanges.
However, an essential component of the Nym token economics is delegating tokens to mix node operators. This measures reputation, but it also incentivises and rewards contributors to the ecosystem for providing good mixes, keeping the mixnet running smoothly.
See also: Nym is not a blockchain, but it is powered by one
The Nyx blockchain that powers the Nym mixnet is built on Cosmos, the ecosystem of interoperable blockchains, which is highly efficient and low-latency. For this reason, the native NYM token is minted on Cosmos, and this is what operators receive as their rewards.
But only native NYM tokens — that is, on Cosmos — can be delegated. While that will remain the case for now, the new token swap interface simplifies converting ERC-20 to Cosmos.
Swapping between ERC-20 and the native token is currently time-consuming. To date, the workaround has been somewhat laborious, involving multiple ecosystems and using Gravity Bridge, an Ethereum to Cosmos bridge that uses the Inter Blockchain Communication protocol.
Token swapping made simple
A survey earlier this year revealed that the Nym community had some concerns about the usability of the NYM token.
Nym’s mission is to build the privacy layer for the whole internet and it is crucial that barriers to entry are as low as possible.
This new feature will make buying into the core Nym ecosystem, and therefore contributing to the success of the Nym mixnet, much, much easier — helping to transform the surveillance economics of the internet into a model that values privacy.
See also: A breakdown of the smart contracts that run the Nym token economics
By implementing token swaps directly in the wallet, Nym is taking one more step towards a seamless user experience, empowering more people to build the private internet whether they are technically minded or not. Simplifying the usability of tokens will help to lay the groundwork for one of the world’s most powerful VPNs: the Nym VPN app, which will launch by the end of the year.
Keep an eye out for the Nym Wallet token swap feature by the end of 2023.
In the meantime, sign up to the Nym newsletter, follow Nym on socials, and join the community to receive updates as they happen.
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