Utility of NOM
NOM is Onomy Protocol's native coin that provides users with significant utility across Onomy Network's ecosystem of applications.
When NOM holders delegate their NOM to a validator, they are staking. Staking provides rewards in return for delegating to validators who support the security and operations of a blockchain network. Read more about NOM staking rewards.
Onomy will be governed by the Onomy DAO, providing NOM holders with the opportunity to guide the decision-making process through NOM-weighed votes. Read more about Governance. A DAO (Decentralized Autonomous Organization) is an organization represented by rules encoded as a transparent computer program, controlled by the organization members, and not influenced by a central government. As the rules are embedded into the code, no managers are needed, thus removing any bureaucracy or hierarchy hurdles. Onomy has taken this a step further by integrating new functionality to the governance module of the Cosmos SDK. A DAO Wallet has been created to hold the entire protocol treasury of funds, further decentralizing management and enabling NOM token holders to participate meaningfully in not only the direction of Onomy - but its use of funds as well. In doing so, Onomy creates a truly decentralized and "on-chain" Foundation governed by NOM holders.
NOM is the single collateral to Onomy's Denom stablecoins. Upon locking the token into the Onomy Reserve, users may easily mint Denoms pegged to the world’s major currencies. Documentation on the minting and peg mechanism will be released here. Stablecoin minting will be a latter stage of Onomy's vertically integrated ecosystem to assure sufficient liquidity amongst a wide set of users and partner blockchain ecosystems.
- Malleable: Ability to mint any denomination of a stabilized virtual currency
- Scarce: Predefined release into circulating supply and burning of supply
- Transferable: Transactions on the Onomy Network finalize near instantaneously
- Durable: Secure decentralized system capable of self-stabilizing from attacks
- Verifiable: Anonymous accounts are publicly verifiable on the network
- Fair: Transactions are ordered by which arrives at the most nodes first
The Onomy Exchange's AMM earnings are dispersed in two ways. Firstly, to pay the respective portion of AMM earnings to liquidity providers. Second, to purchase NOM and then burn the purchased NOM from the supply. This functionality is incentivized by providing a programmatic reward to any user who executes the buy and burn function - thus decentralizing this action and creating a competitive market amongst users to execute the function to receive the reward. Onomy carries no central management of this function.