KEY TAKEAWAYS
- Nodle Network’s DAO successfully led the adoption of Tokenomics v3.1, marking a significant protocol upgrade with strong community support.
- The network transitions to a disinflationary model, introducing a token burn mechanism to reduce total supply and enhance value through real network activity.
- Governance remains token-weighted, allowing NODL holders to influence protocol changes, with Smart Missions incentivizing specific user actions.
- This upgrade aligns the network with sustainable growth, adapting to new mechanics on ZKsync Era, and enhancing token utility.
The Nodle Network has announced a significant milestone with the adoption of Tokenomics v3.1, marking the first major protocol upgrade led by its decentralized autonomous organization (DAO). The proposal received overwhelming support from the community, with over 550.9 million votes in favor and none against, alongside 1 million abstentions. This reflects strong community alignment with the new direction.
In April, the Nodle team issued the first draft to upgrade the tokenomics, which sparked a robust discussion about the current system and proposed changes. The most significant feedback from the community was the desire to reduce daily issuance of network rewards and move away from the original issuance table. As a result, a fixed daily issuance of 631,500 NODL will be distributed among active nodes based on availability, capabilities, and coverage.
Transition to a Disinflationary Model
The network is transitioning from an inflationary to a disinflationary tokenomics model. This means the total supply of NODL will gradually decrease over time, depending on network usage and adoption. A token burn mechanism will be introduced, where a portion of NODL tokens will be burned during specific network interactions, such as using network services. This directly reduces the total supply and ties value to real network activity.
The reward structure will increasingly focus on active and verified users, aligning incentives with genuine participation and growth. The DAO will actively oversee and refine tokenomics as the network evolves, ensuring the model remains sustainable, transparent, and community-driven.
New Mechanisms and Governance
The reduction of daily issuance to 631,500 NODL takes effect shortly after the vote concludes, fulfilling the community’s call for increased scarcity while continuing to incentivize node participation. The burning mechanism for network services is scheduled to go live by 2026.
Smart Missions will apply a 5% burn rate to all tokens used, with the rate controlled by the DAO. For network services, 100% of tokens used to pay for location-based services will be burned, primarily affecting IoT customers subscribing to network services. This proposal introduces measures to enhance token utility and bring network revenues on-chain.
Governance remains token-weighted, allowing all NODL holders to participate in protocol changes and future upgrades. Anyone with enough NODL to cover transaction fees can participate in governance decisions. Smart Missions create a decentralized architecture that rewards users for specific actions, such as sharing Bluetooth data or running decentralized computation.
This upgrade is a significant step toward a sustainable, decentralized future for the Nodle Network. It impacts both nodes and customers and adapts the network to new mechanics now deployed on ZKsync Era. The community can celebrate this achievement as a united step toward shaping the mission, vision, and value proposition of Nodle.
For more details, the announcement can be found here.
Why This Matters: Impact, Industry Trends & Expert Insights
The Nodle Network’s adoption of Tokenomics v3.1 represents a major shift towards a disinflationary model, marking a significant upgrade led by its decentralized autonomous organization (DAO). This transition aims to enhance sustainability and align incentives with network growth and user participation.
Recent industry reports indicate that disinflationary tokenomics are increasingly adopted across blockchain projects to enhance long-term sustainability and token value. This aligns with the Nodle Network’s move to reduce daily issuance and introduce a token burn mechanism, reflecting broader trends towards economic models that prioritize scarcity and value retention.
As per insights from industry experts, disinflationary models are crucial for improving token sustainability and aligning ecosystem incentives. This supports the Nodle Network’s strategy to transition its tokenomics model, aiming to foster a more sustainable and community-driven network.
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