The Nolus Blockchain exemplifies collaborative strength within an open ecosystem, supported by a network of validators, contributors, and infrastructure providers. The NLS token is central to its operation, driving essential functions and empowering utility and governance across the Nolus network.

The NLS token supports four core functions that sustain the Nolus network:

NLS serves as a versatile medium for transaction and network-related fees, efficiently channeling payments from users to validators who secure the network.

NLS token holders play an active role in protocol governance. By staking NLS, they can vote on proposals ranging from parameter adjustments to protocol upgrades.

The NLS token powers the network’s decentralized Proof-of-Stake consensus mechanism. Validators, who safeguard the network, receive NLS rewards that align with defined network parameters.

NLS tokens recognize and reward contributors who support the network’s growth, fostering a thriving ecosystem.

The Nolus ecosystem drives NLS token value growth through thoughtfully designed staking mechanisms:

Revenue generated from interest-bearing leverage positions not only supports the operational sustainability of the Nolus ecosystem but also funds strategic buybacks of NLS tokens. These tokens are removed from circulation and held in a reserve, which can be allocated to governance-approved initiatives. This approach bolsters token value while empowering the community to collaboratively shape the ecosystem’s growth and long-term strategy

Staking NLS tokens will allow borrowers to access lower interest rates on leverage positions. This reduction incentivizes long-term commitment, as undelegating NLS tokens will cause the interest rate to revert to the base rate.

Fifteen percent of the total token supply is allocated to staking rewards, designed to incentivize validators and delegators supporting the blockchain network. At the end of the first operational month, an initial distribution of 2.5% from the staking pool will be released. Each month thereafter in the first year, this release percentage will decrease by 0.05 p.p. month over month. In subsequent years, the release rate reduction will follow a structured decrease: 0.04 p.p. in year two, 0.03 p.p. in year three, 0.02 p.p. in year four, and 0.015 p.p. through years five to seven. By year eight, the decrease will be set at 0.0125 p.p., stabilizing at this rate until the end of year ten.
​

The NLS inflation model initially followed a high-to-low emission curve over a 10-year period, where emissions started at a high rate and declined rapidly over the first 8 years, leveling off to a steady, low rate in the final two years. However, with the passing of vote #163 the community has accepted an adjusted approach to smooth the emission curve.

Under this new model, a more gradual curve has been implemented, reversing the initial pattern. Instead of front-loading emissions, the revised model introduces fewer tokens into circulation in the early stages, with emission rates progressively increasing over the remaining 8.5 years. This change aligns inflation more closely with ecosystem growth, ensuring that as the network matures, an appropriate volume of tokens is available to meet its expanding needs. You can explore this revised curve on WolframAlpha

​