NGINX 301 (www to non-www) standardization/canonicalization on Ubuntu 12.04 x32 Digital Ocean Droplet

Question

I have a small Digital Ocean VPS Droplet, installed Ubuntu Server 12.04 x32, installed LEMP stack as per Digital Ocean guides.

I can't seem to get the hostname to standardize (want to 301 www to non-www).

Here are my server blocks from /etc/nginx/sites-enabled/default (same as ./sites-available/default):

(i've replaced my domain name with example.com)

server {
    listen 80;
    server_name www.example.com;
    return 301 $scheme://example.com$request_uri;
}

server {
    listen   80; ## listen for ipv4; this line is default and implied
    #listen   [::]:80 default ipv6only=on; ## listen for ipv6

    root /usr/share/nginx/www;
    index index.html index.htm index.php;

    # Make site accessible from http://localhost/
    server_name example.com;

    location / {
        # First attempt to serve request as file, then
        # as directory, then fall back to index.html
        try_files $uri $uri/ /index.html;
        # Uncomment to enable naxsi on this location
        # include /etc/nginx/naxsi.rules
    }

    location /doc/ {
        alias /usr/share/doc/;
        autoindex on;
        allow 127.0.0.1;
        deny all;
    }

    # Only for nginx-naxsi : process denied requests
    #location /RequestDenied {
        # For example, return an error code
        #return 418;
    #}

    error_page 404 /404.html;

    # redirect server error pages to the static page /50x.html
    #
    error_page 500 502 503 504 /50x.html;
    location = /50x.html {
        root /usr/share/nginx/www;
    }

    # pass the PHP scripts to FastCGI server listening on 127.0.0.1:9000
    #
    location ~ \.php$ {
    #   fastcgi_split_path_info ^(.+\.php)(/.+)$;
    #   # NOTE: You should have "cgi.fix_pathinfo = 0;" in php.ini
    #
    #   # With php5-cgi alone:
    #   fastcgi_pass 127.0.0.1:9000;
    #   # With php5-fpm:
        fastcgi_pass unix:/var/run/php5-fpm.sock;
        fastcgi_index index.php;
        include fastcgi_params;
    }

    # deny access to .htaccess files, if Apache's document root
    # concurs with nginx's one
    #
    #location ~ /\.ht {
    #   deny all;
    #}
}

and here is my nginx.conf:

user www-data;
worker_processes 4;
pid /var/run/nginx.pid;

events {
    worker_connections 768;
    # multi_accept on;
}

http {

    ##
    # Basic Settings
    ##

    sendfile on;
    tcp_nopush on;
    tcp_nodelay on;
    keepalive_timeout 65;
    types_hash_max_size 2048;
    # server_tokens off;

     server_names_hash_bucket_size 64;
     server_name_in_redirect on;

    include /etc/nginx/mime.types;
    default_type application/octet-stream;

    ##
    # Logging Settings
    ##

    access_log /var/log/nginx/access.log;
    error_log /var/log/nginx/error.log;

    ##
    # Gzip Settings
    ##

    gzip on;
    gzip_disable "msie6";

    # gzip_vary on;
    # gzip_proxied any;
    # gzip_comp_level 6;
    # gzip_buffers 16 8k;
    # gzip_http_version 1.1;
    # gzip_types text/plain text/css application/json application/x-javascript text/xml application/xml application/xml+rss text/javascript;

    ##
    # nginx-naxsi config
    ##
    # Uncomment it if you installed nginx-naxsi
    ##

    #include /etc/nginx/naxsi_core.rules;

    ##
    # nginx-passenger config
    ##
    # Uncomment it if you installed nginx-passenger
    ##

    #passenger_root /usr;
    #passenger_ruby /usr/bin/ruby;

    ##
    # Virtual Host Configs
    ##

    include /etc/nginx/conf.d/*.conf;
    include /etc/nginx/sites-enabled/*;
}