Article XIII: GNOD Token and Tokenomics

This Article constitutes the operative tokenomics framework of the Gnodi Blockchain, enacted following the approval of GNODI-P-4: Long-Term Lock Protocol, Emission Realignment, and Year-1 Supply Reduction Framework by the Delphi Node Owners. This Article supersedes all prior inconsistent tokenomics language, including any prior reference to incorrect token symbols, unverified supply calculations, or legacy reward mechanics inconsistent with GNODI-P-4.

Enactment Record — GNODI-P-4: Vote: 99.8804% YES (55,309.3 nodes) │ Quorum: 76.1752% │ Threshold met: 76.0724% ≥ 75.0000% required. Implementation Authority: Council of Guardians.

Section 1: Native Utility Token

Section 2: No Unauthorized Token Symbol

No governance document, technical document, public-facing document, Treasury document, or tokenomics document shall refer to GNOD or $GNOD by an inconsistent token symbol. Any inconsistency shall be treated as a drafting error unless approved through constitutional amendment.

Section 3: No Guaranteed Value

Nothing in this Charter guarantees any market value, exchange listing, liquidity, profit, appreciation, income, redemption value, or financial return associated with GNOD or $GNOD.

Section 3A: Token Transfer Restrictions and Anti-Concentration

GNOD shall not be sold, assigned, pledged, or otherwise transferred to any person or entity except as permitted under applicable law and approved governance policy. Any proposed transferee must satisfy all eligibility requirements established by the DAO and applicable law, including jurisdictional restrictions. Transfers to individuals or entities identified as malicious actors, sanctioned parties, or those otherwise failing to meet eligibility requirements are strictly prohibited. The DAO reserves the right, through approved governance action, to revoke, freeze, or restrict governance rights associated with GNOD involved in unauthorized transfers. No individual, entity, or group acting in concert—whether directly or indirectly, including through multiple wallets, addresses, or proxy accounts—may control a disproportionate concentration of GNOD supply that would materially undermine decentralization. The Council of Guardians may adopt anti-concentration rules, wallet limits, and investigation procedures through approved governance policy to enforce this principle. Phased concentration limits, if adopted, shall be published on the Governance Portal.

Section 4: Maximum Supply Cap

The original maximum supply cap of the Gnodi Blockchain was 35,000,000,000 GNOD. Pursuant to GNODI-P-4, 5,500,000,000 GNOD from the undistributed Year-1 allocation have been permanently removed from future mint eligibility.

Item:

Original Maximum Supply Cap: Amount (GNOD) 35,000,000,000 Permanent Year-1 Supply Reduction: Amount (GNOD) − 5,500,000,000

Revised Maximum Supply Cap: Amount (GNOD) 29,500,000,000

The 5,500,000,000 GNOD permanently removed pursuant to GNODI-P-4 shall never be minted, distributed, restored, reclassified, or introduced into circulation except by a future constitutional amendment duly approved under this Charter.

Section 5: Genesis Allocation and Year-1 Realignment

13.5.1 Genesis and Year-1 Allocation

The original Year-1 genesis allocation was 17,500,000,000 GNOD. As of GNODI-P-4, approximately 7,072,846,282 GNOD of that allocation remained undistributed. The undistributed balance has been fully accounted for and realigned as follows:

13.5.2 Supply Integrity Commitment

No portion of the undistributed Year-1 allocation may remain hidden, unassigned, or available for discretionary issuance outside this framework. No additional tokens from the original undistributed Year- 1 allocation may be introduced outside this structure or reclassified without further governance approval.

Section 13.6 Annual Emission Schedule and Halving Framework

13.6.1 Framework

The Gnodi Blockchain follows an annual halving-based emission framework. Each emission year, the annual allocation is reduced by one-half relative to the prior year. The halving event occurs on the anniversary of the genesis block. The framework continues until 100% of the revised maximum supply is in circulation, unless modified by constitutional amendment.

13.6.2 Emission Schedule

The emission schedule shall continue beyond Year 12 according to the same annual halving formula unless modified by constitutional amendment.

13.6.3 Daily Allocation Formula

Daily Allocation = Annual Allocation ÷ 365

13.6.4 Transitional Continuity

The permanent removal of 5,500,000,000 GNOD pursuant to GNODI-P-4 does not alter the historical accounting benchmark used to determine the transition threshold from the legacy fixed-reward model to the proportional distribution model.

Section 13.7 Reward Pools

13.7.1 Pool Structure

GNOD emissions shall be distributed through protocol-level reward pools. Unless modified through constitutional amendment, the daily emission ceiling shall be allocated as follows:

Section 13.8 Digital Reward Points (DRP)

13.8.1 Definition and Function

Digital Reward Points (DRP) are the protocol-recognized measurement units used to calculate validated participation, contribution, and commitment within the Gnodi Blockchain reward framework. DRP are accounting and scoring units used to determine proportional reward eligibility under the applicable reward pool. DRP are not GNOD and do not constitute tokens, currency, or transferable assets.

13.8.2 Approved DRP Categories

DRP may be generated through the following approved categories:

• Node operation;

• Validator support;

• Delphi Node participation;

• Application interaction;

• Proof-of-Action activity;

• Proof-of-Contribution activity;

• Protocol Commitment activity; and

• Other approved ecosystem support actions as determined by the Council of Guardians.

Section 13.9 DRP Maintenance Authority

The Council of Guardians shall maintain the official list of approved DRP categories, activities, point values, validation rules, and supported application-based actions. The Council of Guardians may update, refine, add, remove, or modify DRP categories and supported actions as needed to support integrated applications, ecosystem activity, fraud prevention, technical upgrades, and operational integrity, provided such changes remain consistent with this Charter.Any material change that alters token supply, reward pool allocation percentages, maximum supply, emission schedule, or constitutional rights shall require approval through the applicable governance process. Operational DRP updates, application-level scoring refinements, fraud-control adjustments, and non-material implementation changes may be maintained by the Council of Guardians without governance approval.

Section 13.10 Distribution Formula

13.10.1 Legacy Model (Pre-Transition)

Prior to the transition threshold defined in Section 13.10.2, activity rewards are issued under a fixed-per-action model in which each qualifying action generates an approximate GNOD reward based on the participant’s earned DRP.

Legacy Activity Reward Formula: Individual GNOD Reward ≈ Individual DRP/Points Earned

13.10.2 Transition Trigger

The transition threshold is defined as the point at which total daily points earned across all eligible participants exceed the total GNOD available in the Activity Reward Pool. Upon crossing this threshold, the network shall permanently and irrevocably transition to the Proportional Distribution Model. This transition is one-directional and non-reversible.

13.10.3 Proportional Distribution Model (Post-Transition)

Following the transition trigger, all Delphi App Activity reward distributions shall move to the proportional distribution model. No reward formula may cause issuance above the applicable daily allocation ceiling.

Activity Reward Pool (40%): Participant Reward = (Participant Activity Points ÷ Total Activity Points) × Daily Proof of Action Pool Allocation

Network Reward Pool (40%): Operator Reward = (Operator Contribution Points ÷ Total Contribution Points) × Daily Proof of Contribution Pool Allocation

Operator Reward Pool (10%): Operator Reward = (Operator Network Points ÷ Total Network Points) × Daily Operator Reward Pool Allocation

Staking Reward Pool (10%): Staking Reward = (Participant Staked Rewards ÷ Total Globally Staked Rewards) × Daily Staking Pool Allocation

Lock Reward Pool (Separate Reserve): Lock Reward = (Participant Weighted Lock Points ÷ Total Weighted Lock Points) × Daily Lock Reserve Allocation Where: Weighted Lock Points = GNOD Staked × Lock Multiplier (1× / 2× / 4×)

Section 13.11 Long-Term Participation Incentive Reserve

13.11.1 Reserve Overview

The Long-Term Participation Incentive Reserve consists of 500,000,000 GNOD, drawn from the realigned undistributed Year-1 allocation pursuant to GNODI-P-4. This Reserve rewards sustained network participation through voluntary lock-based commitments tied to staked GNOD.

13.11.2 Reserve Characteristics

The Reserve shall be:

• Treated as a deferred allocation, not new supply;

• Non-circulating until distributed under approved rules;

• Subject to public reporting pursuant to Section 13.14;

• Distributed only under the rules set forth in this Section; and

• Unavailable for general Treasury use.

13.11.3 Implementation

The Long-Term Incentive Reserve shall become active upon implementation completion and public confirmation by the Council of Guardians. No distributions shall occur prior to activation. Upon activation, the daily reserve allocation shall be calculated as:

Daily Reserve Allocation = Annual Reserve Allocation ÷ 365

13.11.4 Reserve Emission Schedule

13.11.5 Lock-Based Commitment Mechanics

Participation in the Long-Term Participation Incentive Reserve requires GNOD to be actively staked to an approved validator. For reserve calculation purposes: 1 GNOD staked = 1 base point; points are calculated continuously based on active staked balance; unstaked GNOD generates zero points; points update dynamically with stake changes.

13.11.6 Lock Multipliers

13.11.7 Reserve Reward Formula

Step 1 — Base Points: Points = Total GNOD Staked

Step 2 — Apply Multiplier: Weighted Points = Points × Lock Multiplier

Step 3 — Distribution: Individual Reserve Reward = (Individual Weighted Points ÷ Total Weighted Points) × Daily Reserve Allocation

13.11.8 Eligibility Requirements

To qualify for lock-based reserve rewards, a participant must:

• have GNOD actively staked to an approved validator prior to lock activation;

• execute a voluntary lock commitment through an approved smart contract mechanism;

• adhere to the lock period selected at the time of commitment; and

• comply with all protocol rules governing locked positions.

13.11.9 Lock Rules

Once GNOD is placed into a lock it must remain staked for the full duration, cannot be unstaked or transferred during the lock period, and the lock is enforced at the protocol and smart contract level with no user action able to bypass or modify it. Early exit is not permitted under normal operation. At lock expiration, the GNOD remains staked by default transitioning to a standard staking position and lock-based rewards terminate. To receive lock-based rewards again, a new lock commitment must be initiated.

No early unlock shall be permitted unless expressly authorized by a future governance-approved emergency or technical rule adopted through the applicable governance process.

Section 13.12 Treasury and Ecosystem Allocation

13.12.1 Allocation

The Treasury and Ecosystem Allocation consists of 93,373,068.08 GNOD, drawn from the realigned undistributed Year-1 allocation pursuant to GNODI-P-4. This allocation is assigned to the Gnodi Treasury for governance-controlled ecosystem support.

13.12.2 Permitted Uses

Treasury tokens may be deployed for:

• Grants;

• Technical development;

• Validator and infrastructure support;• Application integrations;

• Community growth;

• Partnerships;

• Security, compliance, and operations; and

• Other ecosystem-supporting purposes approved through governance.

13.12.3 Release Conditions

Treasury tokens shall not enter unrestricted circulation immediately, shall be released only through governance-approved tranches, and shall remain subject to Treasury reporting requirements under Section 13.14.

Section 13.13 Rounding and Reconciliation

The protocol shall apply a public rounding and reconciliation rule ensuring that: daily emissions do not exceed the authorized daily allocation; remainders are handled consistently and transparently; undistributed remainders remain unminted or otherwise accounted for under approved rules; and no rounding method creates unauthorized inflation or supply above the revised maximum supply cap. The rounding rule shall be publicly defined by the Council of Guardians.

Section 13.14 Reporting Requirements

The Council of Guardians shall publish regular reporting sufficient to confirm the following:

• Revised maximum supply (29,500,000,000 GNOD);

• Burned or permanently removed supply;

• Circulating supply;

• Undistributed supply;

• Long-Term Participation Incentive Reserve status;

• Treasury Allocation status and release history;

• Daily emission amounts;

• Reward pool distributions by pool;

• DRP category updates;

• Active lock commitments and reserve distributions; and

• Material implementation updates.

Reporting shall be made available through a public dashboard or equivalent transparency tool.

Section 13.15 Amendment Threshold for Tokenomics Changes

13.15.1 Constitutional Amendment Required

The following changes require constitutional amendment approved through the applicable governance process:

• Increasing the maximum supply cap above 29,500,000,000 GNOD;

• Reversing, restoring, or reclassifying the 5,500,000,000 GNOD permanent supply reduction;

• Changing the annual halving framework or emission cadence;

• Materially modifying the Long-Term Participation Incentive Reserve structure, lock multipliers, or eligibility rules;

• Changing the token symbol rule (GNOD / $GNOD); and

• Modifying any provision of this Article that constitutes a constitutional tokenomics provision.

13.15.2 Council of Guardians Authority (No Constitutional Amendment Required)

The following changes may be implemented by the Council of Guardians without a constitutional amendment, provided such changes remain consistent with this Article and do not alter constitutional tokenomics:

• Operational DRP updates and application-level scoring refinements;

• Fraud-control adjustments;

• Non-material implementation changes;

• Updates to the rounding and reconciliation rule methodology; and

• Additions or removals from the approved DRP category list.