NOS Token

The utility token powering NitroGraph's infrastructure

NOS is NitroGraph's native utility token, serving as the fuel for all network operations and governance.

Token Type: Utility token with governance rights Current Phase: Testnet (using NOS tokens) TGE: 2026 with mainnet launch

Token Utility

Primary Functions

const NITROUtility = {
    // 1. Gas for all transactions
    gas: {
        usage: "Every transaction burns NITRO/NOS",
        estimation: "~0.0001 NITRO per operation *",
        batching: "Reduces gas by up to 99% *"
    },
    
    // 2. Validator staking
    staking: {
        minimum: 100_000, // NITRO required *
        rewards: "Transaction fees + emissions",
        slashing: "For misbehavior"
    },
    
    // 3. Fee voting through consensus
    feeConsensus: {
        mechanism: "Variance-weighted consensus",
        stakeWeight: "Quantity × √time",
        automatic: "No governance votes needed"
    },
    
    // 4. Revenue sharing
    revenueShare: {
        source: "Protocol fees",
        distribution: "Pro-rata to stakers",
        compounding: "Automatic reinvestment option"
    }
};

*Illustrative purposes, subject to change

Variance-Weighted Fee Consensus

Revolutionary Fee Discovery

Instead of governance votes, NitroGraph uses mathematical consensus for fee setting:

# How it works
def fee_consensus():
    """
    Each staker proposes optimal fee
    System finds consensus mathematically
    """
    # 1. Weight by stake and time
    weight = stake_amount * sqrt(lock_time)
    
    # 2. Calculate weighted average
    average_fee = weighted_mean(all_proposals)
    
    # 3. Penalize extreme proposals
    variance_penalty = exp((proposal - average)² / average² - 1)
    
    # 4. Converge to optimal fee
    optimal_fee = minimize_variance(all_proposals)
    
    return optimal_fee

Benefits

  • No voting fatigue: Automatic fee adjustment

  • Market-driven: Responds to actual network conditions

  • Sybil resistant: Time-lock prevents gaming

  • Always optimal: Mathematics finds equilibrium

Time-Lock Innovation

Perpetual Bonds Model

const perpetualBonds = {
    // Lock tokens for continuous rewards
    mechanism: "Time × Stake = Weight",
    
    // Longer locks = higher rewards
    rewards: {
        "30 days": "1x multiplier *",
        "90 days": "1.5x multiplier *",
        "180 days": "2x multiplier *",
        "365 days": "3x multiplier *"
    },
    
    // Early exit penalties
    penalties: {
        "< 30 days": "50% penalty *",
        "< 90 days": "25% penalty *",
        "< 180 days": "10% penalty *"
    }
};

*Illustrative purposes, subject to change

Token Distribution

Initial Allocation

Category
Allocation
Vesting

Team & Advisors

20% *

4-year linear

Investors

15% *

2-year linear

Ecosystem Fund

30% *

10-year release

Validators

10% *

Immediate

Community

25% *

Various programs

*Illustrative purposes, subject to change

Emission Schedule

# Dynamic issuance model (S-curve)
def emission_rate(network_usage):
    """
    Emissions increase with usage, then plateau
    """
    base_rate = 2_000_000  # Annual *
    
    # Logistic growth function
    growth = 1 / (1 + exp(-network_usage))
    
    # Scale emissions
    emissions = base_rate * growth
    
    # Cap at maximum
    return min(emissions, 10_000_000)  # Annual cap *

*Illustrative purposes, subject to change

Fee Distribution Waterfall

graph TD
    A[Transaction Fees] --> B{Distribution}
    B -->|40%| C[Validators *]
    B -->|30%| D[NITRO Stakers *]
    B -->|20%| E[Protocol Treasury *]
    B -->|10%| F[NUSDC Bonders *]
    
    E --> G[Development]
    E --> H[Grants]
    E --> I[Insurance]

*Illustrative purposes, subject to change

Governance Rights

Current Implementation

  • Parameter adjustment: Fee ranges, staking requirements

  • Protocol upgrades: Via timelock contracts

  • Treasury management: Allocation of protocol funds

Future Vision (Research Phase)

  • 100% Algorithmic Governance: Fully autonomous protocol decisions

  • Oracle-free parameters: Self-adjusting system variables

  • AI-driven optimization: Machine learning for protocol parameters

Staking Rewards

APY Calculation

function calculateAPY(
    stakeAmount: number,
    lockDuration: number,
    networkFees: number
): number {
    // Base APY from emissions
    const baseAPY = 8; // 8% *
    
    // Time multiplier
    const timeBonus = Math.sqrt(lockDuration / 365);
    
    // Fee share
    const feeShare = (stakeAmount / totalStaked) * networkFees;
    
    // Total APY
    return baseAPY * timeBonus + feeShare;
}

// Example returns
// 30-day lock: 8-12% APY *
// 90-day lock: 12-18% APY *
// 365-day lock: 18-30% APY *

*Illustrative purposes, subject to change

Security Features

Slashing Conditions

Violation
Penalty

Double signing

5% stake *

Downtime > 24h

1% stake *

Invalid blocks

10% stake *

Malicious behavior

100% stake *

*Illustrative purposes, subject to change

Token Economics

Value Accrual

# How NITRO captures value
value_drivers = {
    "Transaction Volume": "More fees to distribute",
    "Network Growth": "Increased demand for gas",
    "Staking Ratio": "Supply reduction",
    "XP Integration": "Cross-token synergies"
}

Deflationary Mechanics

  • Gas burning: Every transaction burns NITRO

  • Slashing: Misbehavior removes tokens

  • Time locks: Reduces circulating supply

Integration with XP

const synergyMechanics = {
    // XP holders can stake NITRO for bonus
    xpBonus: "10% APY boost per 100K XP *",
    
    // NITRO stakers earn XP
    xpEarning: "1 XP per 1000 NITRO staked daily *",
    
    // Combined governance weight
    votingPower: "NITRO * (1 + XP/1M) *"
};

*Illustrative purposes, subject to change

FAQ

Q: What's the difference between NITRO and NOS? A: NOS is the testnet version. They'll convert 1:1 to NITRO at mainnet launch.

Q: How is this different from other L1 tokens? A: NITRO uses variance-weighted consensus for fee discovery instead of governance votes, creating more efficient price discovery.

Q: When will advanced features launch? A: Core features launch with mainnet (2026). Advanced algorithmic features are in research and may launch 2027+ if proven safe.

Q: Is there a maximum supply? A: Yes, 1 billion NITRO maximum supply with dynamic emissions based on network usage. *

*Illustrative purposes, subject to change


NITRO: Fueling the autonomous agent economy.

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