NXM is the governance token for the Nexus Mutual protocol. It is used to purchase coverage, vote on government decisions, and participate in risk assessments and complaints. It is also used to encourage raising capital and represents mutual ownership of shares. As the mutual capital fund increases, the value of NXM will also increase. The price of the token is determined using a bond curve that is influenced by both the amount of capital the mutual has and the amount of capital it needs to satisfy all requests with a certain probability.