The Nolus Blockchain stands as a testament to the power of collaboration within an open ecosystem. A network of dedicated validators, contributors, and infrastructure providers form the backbone of this groundbreaking platform. At its core, the NLS token takes center stage, facilitating many crucial functions that drive utility and governance within the Nolus network. Additionally, the NLS token is now available on the Osmosis DEX and MEXC, broadening its accessibility and offering more opportunities for users to engage with the Nolus ecosystem.
Utility
The NLS token boasts a robust utility, powering four essential functions that underpin the Nolus network.
Transaction and Network Fees
NLS takes on the role of a versatile medium, facilitating the seamless flow of transaction fees and other network-related charges from users to the validators who diligently maintain the network's integrity.
Governance Participation
NLS token holders wield influence through active participation in the protocol's governance. By staking NLS, holders can cast their votes on pivotal proposals. These proposals encompass a broad spectrum, from refining parameters to implementing cutting-edge protocol upgrades.
Incentivizing Decentralization
The decentralized Proof-of-Stake consensus mechanism is the bedrock of the Nolus network. NLS tokens are pivotal in incentivizing this decentralization, reinforcing security and transaction validation. Validators, as guardians of network integrity, are rewarded with NLS tokens that align with predefined network parameters.
Rewarding Ecosystem Contributors
A flourishing ecosystem hinges upon the efforts of its participants. NLS tokens serve as a conduit to acknowledge and reward those contributing to the network's growth and enhancement.
Value Accrual
The Nolus ecosystem actively fosters value growth through innovative mechanisms:
Adjusted DeFi Lease Interest (Upcoming)
Staking NLS tokens takes on an innovative dimension with the prospect of lower interest rates for borrowers leveraging DeFi Lease positions. This dynamic interest reduction is linked to the staking duration – a testament to the Nolus ecosystem's adaptability. An important note: if NLS is undelegated, the interest rate reverts to the base rate, regardless of the staking period.
Lenders Tiered APR Incentive (Upcoming)
Lenders find a compelling reason to acquire and stake NLS tokens as they amplify their rewards on supplied stablecoins or tokens. With increasing protocol utilization, lenders must secure more NLS tokens to access higher Annual Percentage Rates (APRs). This mechanism fortifies the token's value, mirroring the protocol's Total Value Locked (TVL).
Lease Revenue
The lifeblood of the protocol's revenue stems from interest-bearing DeFi Lease contracts. This revenue stream serves a dual purpose – not only powering the ecosystem but also contributing to repurchasing NLS tokens from the open market. These acquired tokens are subsequently funneled into the Nolus Incentives Pool, enabling the distribution of rewards to lenders.
Structure & Allocation
15% of the total supply serves as staking rewards to incentivize validators and delegators on the blockchain. At the end of the first month of operations, 2.5% of all tokens in the staking pool will be distributed. The monthly percentage of tokens released thereafter will decrease by 0.05 p.p. per month compared to the previous month until the end of year one. In the following years, the tokens released will decrease monthly by 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. in years five to seven, 0.0125 p.p. in year eight and remain constant until the end of year ten.
