Skip to main content

​
Tokenomics

Notareum’s tokenomics are designed to align incentives across users, validators, integrators, and long-term holders. The supply of $NOTA is dynamic: it adjusts to protocol usage through goal-oriented minting and multi-faceted burning. The result is a token economy that rewards honest participation and penalises malicious behaviour.

​
Supply dynamics

​
Minting

NOTA is minted under two conditions:
  1. KPI-driven emissions: the protocol mints additional supply when specific key performance indicators are achieved (resource registrations, verification throughput, cross-chain coverage). This ties supply growth to real protocol adoption.
  2. Integration grants: governance-approved grants to wallets, exchanges, and dApps that integrate the SDK. Grants can reach up to 200,000 NOTA for major integrations, paid out on usage milestones.
All minting requires a governance proposal to pass. There is no privileged minter address.

​
Burning

NOTA is burned through four mechanisms:
  1. Fee burns: a percentage of every verification fee is burned, creating deflationary pressure proportional to protocol usage.
  2. Slashing burns: when a validator is slashed, a portion of the slashed stake is burned. The remainder flows to disputers and the treasury.
  3. Failed dispute burns: bonds posted for disputes that are deemed frivolous are burned, discouraging griefing.
  4. Alias registration burns: a portion of alias fees is burned, linking the value of aliases to overall token scarcity.
The balance between minting and burning is tuned by governance to support long-term price stability while preserving incentive alignment.

​
Fee distribution

When a user pays a verification fee, the fee is distributed as follows: The integrator share (15%) goes to whoever referred the verification, typically the wallet or dApp that initiated the request. Years 1 and 2 see an elevated integrator share (15%); from year 3 onwards it settles at 10%.

​
veNOTA mechanics

Lockers receive voting power proportional to their lock duration. A 4-year lock grants maximum voting power per NOTA; shorter locks scale linearly down. This rewards long-term alignment and discourages speculators from gaining outsized governance influence. See veNOTA for the full lock mechanics.