Introduction

The Service Declaration Protocol (Service Declaration Protocol Specification) enables participants to register for specific services in decentralized public registries by committing a predefined stake. Registered participants may then provide the declared service in exchange for rewards. The protocol uses staking as a mechanism to ensure sybil resistance and incentivize honest participation.

This document aims to define an optimal stake value per participant in the context of the SDP. The stake must strike a careful balance: it should be high enough to discourage sybil attacks while remaining low enough to ensure broad participation, especially in early network stages. Importantly, the protocol mandates a uniform, constant stake value across services and epochs, adding constraints to its determination.

Given that Nomos is a pre-launch L1 blockchain with no on-chain economic data, this analysis builds on comparative valuation research across similar blockchain ecosystems (e.g., Ethereum, Solana, Avalanche, etc.). The methodology includes:

Estimating Nomos' Fully Diluted Valuation (FDV) using internal valuation models and market comps
Defining key variables influencing staking mechanics, such as token supply at TGE, staking ratio, and target number of participants
Deriving a simple and transparent formula to calculate the required stake per service provider, both in NMO and USD terms

Key internal references include the Service Declaration Protocol Specification and the Nomos valuation model repository.

Overview

The SDP is a staking-based registration mechanism designed for decentralized services in the Nomos ecosystem. Its primary purpose is to assign participants to public service registries by requiring them to lock a predefined amount of NMO tokens as stake. Only participants who stake the required amount are allowed to offer the service they declare, thereby creating a natural filter that promotes honest behavior and sybil resistance.

This protocol is parameterized by a single stake value that is:

Constant across all services and epochs, to ensure predictability and fairness
Calibrated to balance security and accessibility, based on Nomos’ economic assumptions

To determine this stake value, the document introduces a simple model that incorporates:

$\text{FDV}$: The Fully Diluted Valuation (FDV) of Nomos
$S_{\text{max}}$: The maximum circulating supply of the Nomos token
$S_{\text{TGE}}$: The supply of tokens at the Token Generation Event (TGE)
$r_{\text{stake}}$: The desired staking ratio of circulating supply