Dear nodes, holders, members of the smartphone-fueled DAO and builders of the Nodle Network,

today marks a major milestone in the history of the Nodle Network. Collectively, holders have voted in favor of the first major protocol upgrade to shape the future of the DAO: Tokenomics v3.1. This proposal received overwhelming support - over 550.9 million votes in favor and none against, with 1 million abstentions, reflecting strong community alignment with the new direction.

In April, the team issued the first draft to upgrade the tokenomics, sparking 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. This led to the adoption of a fixed daily issuance of 631,500 NODL, distributed among active nodes based on availability, capabilities and coverage.

This change demonstrates the holders’ commitment to increasing the scarcity of NODL and supporting sustainable network growth and services.

Transition to a disinflationary model: The network is moving from an inflationary to a disinflationary tokenomics model. The total supply of NODL will gradually decrease over time, depending on network usage and adoption.

Token burn mechanism: A portion of NODL tokens will now be burned during specific network interactions (such as using network services), directly reducing the total supply and tying value to real network activity.

Reward structure update: Rewards will increasingly focus on active and verified users, aligning incentives with genuine participation and growth.

DAO oversight: The DAO will actively oversee and refine tokenomics as the network evolves, ensuring the model remains sustainable, transparent, and community-driven.

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: A 5% burn rate applies to all tokens used in Smart Missions, with the rate controlled by the DAO.

Network Services: 100% of tokens used to pay for location-based services will be burned, primarily affecting IoT customers subscribing to network services.

The 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, running decentralized computation or capturing photos. Developers determine qualifying actions and users may need to lock NODL tokens to participate, with a 7-day cooldown before unlocking. Rewards can be in NODL, mission-specific tokens or stablecoins, depending on the mission.

Subscription-based Smart Missions will burn a governance-controlled percentage of tokens, initially set at 5%.

Network connectivity will be managed via Smart Mission contracts. Subscribers will acquire and lock NODL in subscription contracts to access services, with 100% of tokens deposited for network services being burned. For IoT customers, subscriptions provide time-gated access to the Nodle Network Routing Table.

In the initial phase, services may be provided by third parties, so customers do not have to handle cryptocurrency directly.

This is the first major DAO-led protocol upgrade, impacting both nodes and customers and adapting the network to new mechanics now deployed on ZKsync Era. It’s a significant step toward a sustainable, decentralized future for the Nodle Network.

Every participant in the DAO can celebrate this achievement - a united step toward shaping the mission, vision and value proposition of Nodle.

Get ready for the next proposal and today, every node in the network has a reason to celebrate this first big step toward a united vision for Nodle.