Prop 321: Adjust Gas Tax Parameter

Summary

Whenever users pay gas fees on the Nolus network, a portion of those fees is automatically redirected to support the protocol's buyback mechanism. Currently, 40% of each transaction fee is transferred to the Profit contract, which executes periodic buybacks of NLS, reinforcing the token's value and strengthening the overall economic loop.

Goal

This proposal seeks to increase the buyback share from 40% to 100%, ensuring that all gas fees collected by the network are allocated directly to the Profit contract. As a result, every transaction, regardless of the token used for gas, will fully contribute to the ongoing NLS buyback process.

Reasoning

By adopting this change, the protocol will significantly enhance the positive flywheel effect for NLS holders and stakers. The continuous and complete conversion of gas fees into buybacks is expected to accelerate NLS value accrual, strengthen the protocol's sustainability, and align all network activity with long-term token growth.

Validators will continue to earn staking rewards for securing the network, but will no longer receive a share of gas fees. However, given that gas fee income currently represents a negligible portion of validator earnings, this change should have minimal impact on validator incentives while substantially improving the protocol's value capture dynamics.

Outcome

By voting "YES", you support directing 100% of all gas fees to the Profit contract amplifying NLS buybacks and reinforcing the long-term economic health of the Nolus ecosystem.