NLS Structure, Utility & Accrual

The Nolus blockchain is run by a network of validators, contributors and infrastructure providers. NLS is the token at the centre of it: it pays for network activity, secures the chain, and gives holders a say in how the protocol develops.

NLS supports four core functions.

NLS is used to pay transaction and network fees, which pass from users to the validators securing the network.

NLS holders take part in protocol governance. By staking NLS, they can vote on proposals ranging from parameter changes to protocol upgrades.

NLS powers the network’s Proof-of-Stake consensus. Validators receive NLS rewards in line with the defined network parameters.

NLS is also used to reward contributors who help the network grow.

Two mechanisms tie protocol activity back to the token.

Revenue from interest-bearing leverage positions covers the running costs of the Nolus ecosystem and funds buybacks of NLS. Bought-back tokens are removed from circulation and held in a reserve, which governance can allocate to approved initiatives.

A fee abstraction mechanism lets users pay gas fees in any protocol-supported asset, so there is no need to convert assets first. The fees collected this way are distributed to delegators as staking rewards.

Fifteen percent of the total token supply is allocated to staking rewards for validators and delegators. At the end of the first operational month, an initial 2.5% of the staking pool is released. Each month after that in the first year, the release percentage decreases by 0.05 p.p. month over month. In later years the reduction steps down further: 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. From year eight the decrease is 0.0125 p.p., staying at that rate until the end of year ten.

The NLS inflation model originally followed a high-to-low emission curve over ten years, starting high and declining quickly over the first eight years before levelling off. With the passing of vote #163, the community accepted a smoother curve.

Under the current model, fewer tokens enter circulation in the early stages and emission rates increase gradually over the remaining 8.5 years. This aligns inflation more closely with ecosystem growth, so more tokens become available as the network matures. You can explore the revised curve on WolframAlpha.

On-chain, real-time tokenomics data for NLS is public at tokenomist.ai/nolus, including circulating supply, staking participation, reward emissions, treasury inflows and value accrual to the protocol.