$NOON: A Governance token with real returns

At Noon, we believe governance shouldn’t just be a responsibility—it should be rewarded. Protocols are complex systems that need constant tuning, and those who participate in shaping them deserve to see value in return. That’s why we’ve designed $NOON and $sNOON not just as tokens of participation, but as vessels of long-term value creation.

While most governance tokens offer a say in decision-making—and, implicitly, the chance to benefit from token appreciation—we wanted to go further. At Noon, holding $sNOON (the staked version of $NOON) will not just earn you influence. It will earn you a share of the value the protocol generates (once $NOON is transferable later in 2025).

Building with intention

From the beginning, we designed this system with a few principles in mind.

First, we wanted rewards to go to the right people: those who are actively participating in governance. That’s why distributions go to $sNOON holders, not just anyone holding liquid $NOON. If you’re not staking and voting, you’re not earning.

Second, rewards are proportional to voting power. The more involved you are—and the more weight you carry—the more you receive. This creates alignment between influence and economic upside, encouraging deeper, more thoughtful governance.

Finally, and perhaps most importantly, we built this system without compromising the protocol’s stability. The Insurance Fund and the Operations Fund are essential components of Noon’s resilience, and they remain fully protected under this model. Only when surplus capital is truly excess—when all internal needs are met—do we direct it outward to the community.

The role of the insurance fund

Central to our return-sharing model is the Insurance Fund. This fund exists to safeguard the protocol from temporary shocks—things like delayed dividends from real-world asset investments. It is allocated returns from two sources.

First, each month, 10% of the protocol’s raw returns flow directly into the Insurance Fund. Second, surplus from the Operations Fund (once the it is fully capitalised) is also directed to the Insurance Fund. Both of these contributions accumulate and season in the Insurance Fund for a period of three months. This seasoning window gives us flexibility, preserves protocol stability, and ensures that funds aren’t prematurely redirected away from core protections.

Once this three month “seasoning” is completed, the capital is released. At that point, it serves a new purpose: buying back $NOON from the open market.

Buying back and giving back

The mechanics from here are simple but powerful. Every month, capital that has finished “seasoning” is used to repurchase $NOON tokens from the open market. This will be done transparently, on-chain, without behind-the-scenes deals or insider execution.

$NOON that is bought back aren’t then held by the protocol, granted to the team or recycled elsewhere—they’re distributed to $sNOON holders. Distribution is based on a snapshot of Voting Power taken at the beginning of the month, ensuring clarity and consistency. Voting Power is a measure which takes into account the amount of $NOON you have staked, and your chosen staking duration. During the period that $NOON is non-transferable, we have elected to simplify this process, and have a common staking duration (indefinite) and no penalty for unstaking (other than a 7-day cooldown). We will revise these once $NOON is transferable.

If you’ve staked your $NOON and you’re participating in governance, you’ll receive a share of the bought-back tokens, in line with your voting weight. The more involved you are, the more you earn. Simple.

A clear loop of incentives

What this will create is a clean, closed loop of incentives:

You stake $NOON into $sNOON to gain governance rights.
You vote and influence the direction of the protocol.
You earn real returns, in the form of bought-back $NOON, directly distributed to you (only distributed once $NOON is transferable).
That return reinforces your stake and deepens your involvement.

It’s a model that avoids short-term thinking. There are no speculative games or high-emission inflation. Just real protocol returns, directed to those building its future.

Closing thoughts

This isn’t just about rewards. It’s about reinforcing the core idea behind Noon: that value belongs with users. That governance isn’t symbolic. And that participation should be profitable—not just ideologically, but economically.

We’re excited to see how this shapes the future of $NOON governance. As always, we’ll keep refining, listening, and building systems that align with our north star: long-term, community-owned success.

If you're staking, voting, and contributing—you deserve a share of what you’re helping build.

And now, it’s yours.