From Yield to Growth: Aligning NOS Rewards with Real Usage!

Nosana is entering its next chapter. After scaling to serve millions of GPU jobs and a growing community of builders, we’re ready to evolve our tokenomics through a new proposal that will shape the future of the network.

The proposal has a simple goal: make NOS rewards work harder by funding what grows the network - capacity, reliability, and returning demand. Today, yield is largely decoupled from real usage. That slows adoption and dilutes holders without buying the trust and availability a marketplace needs. We’re changing that by tying emissions to measurable service and real usage, so every NOS spent fuels growth!

Why this change matters now

Nosana has reached a point where reliability and repeat usage matter more than ever. Under the current model, emissions expand supply even when jobs don’t grow and service isn’t improving. Passive balances benefit, while the people operating GPUs and the builders running workloads see less of the upside. The result is predictable: dilution without enough growth.

The proposed direction flips the incentives. Instead of subsidising idle capital, emissions will purchase availability and trust. Rewards will flow to hosts who keep capacity online and deliver consistently, and the system will encourage customers to return with rebates that lower the cost of the next job. In other words: NOS emissions will fund the behaviours that compound network effects and make Nosana stronger for everyone.

How the New NOS Emissions Model Would Work

Imagine a simple feedback loop: NOS rewards pay hosts for uptime and reliability, clients get rebates for regular, consistent usage, and both sides reinforce demand and supply. Here’s how it comes together:

• From passive yield to earned rewards. NOS rewards go to active contributors - hosts who meet reliability thresholds and customers who keep building on Nosana. Passive rewards are reduced so yield comes from contribution, not dilution.

• Skin in the game for stronger reliability. The more powerful the GPU, the higher the NOS collateral a host locks. This raises commitment, hardens the network against Sybil attacks, and aligns incentives with quality of service.

• Performance matters. Measured uptime, latency and job completion influence scheduling and reward weight. Better service earns more; poor service lowers weight or becomes ineligible.

• A demand flywheel. Customers earn deployment rebates that reduce the cost of repeat usage. This makes workloads cheaper over time, boosting retention and encouraging more supply to come online, without increasing circulating NOS.

• Transparent by design. Simple formulas and auditable metrics keep the system fair and predictable. All equations and parameters will be published for community review.

What this means for you

Hosts: This is a fairer, performance‑based system. If you keep GPUs available, deliver jobs reliably, and maintain a strong reputation, you’ll earn more rewards and win more jobs.

Customers: Running jobs becomes cheaper and more reliable. Deployment rebates reward returning users, and job scheduling prioritises reputable, collateralised hosts — so your workloads start quickly and complete on time.

NOS holders: Your tokens work harder. Less NOS is emitted to idle balances, more is used to purchase real capacity, reliability, and demand - aligning token value with network activity. And because all equations are public, you can verify every reward.

Addressing common concerns

It is natural to wonder how these changes may affect staking rewards. The key takeaway is that rewards will be realigned to reflect actual contribution. Emissions will be directed toward participants who provide capacity and maintain network reliability, ensuring that rewards are both meaningful and performance‑based. This approach is designed to strengthen network integrity and support the long‑term value of NOS.

Timeline and how to engage

• October: Full Proposal Live
  The complete tokenomics specification, including parameters, modelling, and examples, is now available on GitHub. Check it out here. Explore the full details here.
• #yield-to-growth-ama: Dedicated Discord Channel
  The channel is now open. Join the discussion, share your feedback, and post any questions ahead of the upcoming AMA. The team will be responding directly in the channel and collecting key questions to address live during the AMA session.
• October 27, 2025: AMA with Tony Drummond (tokenomics.net)
  Join us for a detailed walkthrough of the proposal’s reasoning, design principles, and what this change means for the future of Nosana.
• November: Binding Vote
  Token holders will cast their votes on adoption through an on-chain governance process.

The road ahead

This proposal is one of the most important steps in Nosana’s history. It marks a shift from printing yield to purchasing growth - aligning incentives for hosts, customers, and holders alike. If adopted, it sets Nosana on a path where adoption compounds, capacity grows stronger, and NOS reflects the real utility of the network!

Bring your questions to the October 27th call, review the full specification, and make your voice heard in the November vote. Together, we can build a marketplace where rewards fuel the behaviours that make Nosana thrive.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Implementation proceeds only if approved by governance. Final parameters may change following public review and the binding vote.

Useful Links

• Join the Discord
• Follow us on X
• Nosana on GitHub