Nosana Staking Program Update

3 min readAug 6, 2024

To ensure the network’s continued success and long-term potential, we’re implementing a key update to our staking program.

Since the launch of our staking program in August 2022, the Nosana Network has experienced significant growth in stakers, thanks to our incredible community. To ensure the network’s continued success and long-term potential, we’re implementing a key update to our staking program, effective today, May 21st, 2024.

A Focus on Long-Term Sustainability

As the Nosana Network grows, ensuring its long-term health becomes paramount. To achieve this, we’re implementing a modification of staking rewards, effective today. This adjustment will result in an approximate halving of the APY. It’s important to remember that our dynamic staking rewards system considers multiple variables so that the actual APY fluctuation might be slightly higher or lower.

Why These Changes Matter

The APY adjustment might raise questions, but there’s a clear vision: ensuring a sustainable future for Nosana’s thriving ecosystem. This means prioritizing long-term health and aligning rewards with industry standards to benefit all stakers.

Building an Even Stronger Network

We’re constantly working to improve the Nosana staking experience. Here’s a glimpse into the developments planned for the future:

Proof-of-Stake (PoS): We’re actively working on transitioning to a Proof-of-Stake (PoS) system. In the near future, users will need to stake a specific amount of NOS tokens to operate a node. This stake acts as collateral, guaranteeing responsible and efficient behavior from nodes and ultimately strengthening network security.
Transaction-Based Rewards: As the network grows and more inferences are run, stakers will receive more rewards. We have a transaction-based rewards system in which a portion of every transaction fee is distributed proportionally among all stakers. This means the more the network is used, the greater the rewards for our dedicated community!

The Future is Staked on Nosana

These staking updates represent a significant step forward for Nosana. With the future implementation of Proof-of-Stake, slashing mechanisms, and a focus on transaction-based rewards, we’re creating a system where user participation is directly tied to network security and prosperity.

FAQs

Why is the APY being halved and when does it take effect? We modified the staking rewards to ensure the long-term health and sustainability of the Nosana Network. This change took effect on May 21st, 2024. However, the current base APY will remain stable for a long period, providing predictability for stakers.

What is Proof-of-Stake (PoS) and how will it impact me? PoS is a new system for securing the Nosana Network. In the future, users will need to stake NOS tokens to operate a node. This staking requirement incentivizes honest behavior from nodes and ultimately strengthens network security.

What is slashing, and how can I avoid it? Slashing is a penalty for malicious activity by a node, resulting in a loss of staked tokens. To avoid slashing, simply participate honestly and responsibly as a node operator.

What are transaction-based rewards? Transaction-based rewards are an exciting addition to the Nosana staking program. This system rewards stakers based on network usage. A percentage of each transaction fee is distributed proportionally among all stakers, offering the potential for increased earnings as the network grows!

About Nosana

Nosana is an open-source cloud computing marketplace dedicated to AI inference. Their mission is simple: make GPU computing more accessible at a fraction of the cost. The platform has two main goals: providing AI users with flexible GPU access and allowing GPU owners to earn passive income by renting out their hardware.

By offering affordable GPU power, Nosana enables AI users to train and deploy models faster without expensive hardware investments, all powered by the $NOS token. Access compute for a fraction of the cost or become a compute supplier at Nosana.io.