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NLS Structure, Utility & Accrual
NLS Structure, Utility & Accrual
Updated over a week ago

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.

Utility of NLS Token

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

Transaction and Network Fees

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

Governance Participation

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.

Incentivizing Decentralization

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.

Rewarding Ecosystem Contributors

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

Value Accrual Mechanisms

The Nolus ecosystem promotes NLS token value growth through innovative mechanisms:

Adjusted DeFi Lease Interest (Upcoming)

Staking NLS will offer borrowers reduced interest rates on DeFi Lease positions. This interest reduction correlates with the staking duration, but if NLS tokens are undelegated, the interest rate returns to the base rate.

Lenders’ Tiered APR Incentive (Upcoming)

Lenders benefit from acquiring and staking NLS tokens to boost APR on their supplied stablecoins or tokens. As protocol utilization grows, lenders must secure more NLS to access higher APR tiers, reinforcing token value in line with Total Value Locked (TVL).

Lease Revenue

Revenue from interest-bearing DeFi Lease contracts not only sustains the Nolus ecosystem but also funds strategic NLS token buybacks. These repurchased tokens are effectively removed from circulation, creating a reserve that the community can later allocate through governance-approved initiatives. This mechanism not only supports token value but also empowers the community to shape future growth and development through thoughtful, collective decision-making.

Structure & Allocation

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


NLS Availability

The NLS token is available across several centralized and decentralized exchanges such as Osmosis DEX, Astroport on Neutron, Uniswap on Ethereum, MEXC, XT, and Digifinex, broadening its accessibility and offering more opportunities for users to engage with the Nolus ecosystem

Additionally, in the table below you can find the representations of NLS on networks where NLS is available

Chain

Denom/Contract Address

Bridge

Nolus

unls

Native

Osmosis

ibc/D9AFCECDD361D38302AA66EB3BAC23B95234832C51D12489DC451FA2B7C72782

IBC

Neutron

ibc/6C9E6701AC217C0FC7D74B0F7A6265B9B4E3C3CDA6E80AADE5F950A8F52F9972

IBC

Ethereum

0xb34e17562e4f1f63a2d4cf684ed8bc124e519771

Axelar

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