$NOON will launch as a non-transferable governance token at the Token Generation Event (TGE), scheduled for late June, early July 2025. Transferability is expected to be enabled by the end of 2025.

This decision is grounded in our commitment to active participation, long-term alignment, and protocol integrity. By holding off on transferability, we’re intentionally creating space for governance to take shape based on contribution and conviction—not speculation or capital-based influence.

We know this approach may not resonate with everyone. But we believe that building Noon with patience and purpose will ultimately lead to a stronger, more resilient protocol.

In this post, we’ll walk through the reasoning behind this decision, the trade-offs it introduces, how we plan to phase in transferability and what you can already do with $NOON at launch—along with how you can continue to shape this process with us.

Mechanics

At TGE, users will be able to claim their $NOON tokens based on their wallets' activity and holdings in $USN and $sUSN. However, these tokens will be non-transferable initially, meaning they:

• Cannot be sold or traded on a Centralised or Decentralised exchange

• Cannot be sent or otherwise moved to another wallet

Importantly, $NOON will still be able to be staked (for $sNOON, which is also non-transferable), unlocking powerful benefits (see below).

Staking Benefits

Despite $NOON (and $sNOON) being non-transferable at TGE, holders will still be able to stake Noon to access a range of benefits. Staking $NOON gives users $sNOON, which provides the following immediate benefits:

• Users’ $NOON tokens, based on their historic USN / sUSN holdings and activities (and Noon points earned) will vest over 12 months, with 10% claimable upfront. This vesting will only occur if users stake all available (claimable) $NOON for $sNOON.

• $sNOON holders get 4x voting power instantly, allowing holders a larger voice in governance decisions

• Unstake anytime with a 7-day cooldown (temporary during non-transferable window).

Once $NOON transferability is enabled, $sNOON holders will further benefit from receiving returns via the Noon Insurance Fund and the Noon Buy-Back Programme [details to follow].

The Noon team will monitor community sentiment and market dynamics, with a target of enabling transferability by the end of 2025.

Rationale

There are several reasons why protocols make governance tokens non-transferable initially. See prominent examples from EigenLayer and Morpho, here and here.

Making a governance token non-transferable is often a deliberate design choice, especially in early-stage or mission-driven DAOs, protocol governance, or experimental communities. Here are the key reasons why this is done:

• Prevent vote-buying and governance captureTransferable tokens invite capital accumulation and plutocratic dynamics. Making tokens non-transferable ensures governance power stays with real users—not speculators—and gives the community space to test governance in a low-risk, learning-focused phase.

• Reduce speculative pressureBy removing the ability to trade, non-transferable tokens dampen hype cycles and short-term price movements, creating space for governance to evolve with values, not volatility.

• Reinforce identity and contributionGovernance power becomes a reflection of participation, trust, and accountability—favoring long-term alignment over financial gain.

• Foster organic community growthEarly decisions should be shaped by builders and contributors who show up, not just those who buy in. This approach ensures governance reflects commitment, not capital.

What do we lose?

While the benefits of non-transferability are clear, it’s important to acknowledge the trade-offs. We acknowledge these, and have considered them carefully when making this decision:

• Reduced composability Non-transferable tokens are harder to integrate with DeFi protocols, tooling, and infrastructure that assume ERC-20-like behaviour.

Consideration: We understand that temporarily limiting composability of our governance token is an imposition for some. But most of the composability of web3 tokens centers around their monetary value. We want to limit transferability temporarily so users can fully understand and appreciate the governance value of $NOON, and not simply focus on its monetary value.

• Limited liquidity and discovery Markets help surface value signals and can attract contributors or visibility. Restricting transfers may dampen those signals in the short term.

Consideration: We appreciate that some users will be put off by the lack of value signals and liquidity in the short term. But we’re really prioritising our long term users - and we hope all our users can appreciate this.

• Onboarding friction Potential contributors may be less motivated if there's no immediate financial upside or if governance power feels “locked.”

Consideration: We know that immediate financial upside is a large driver for users. Given that our staked stablecoin (sUSN) provides this - with yield strategies driving enhanced yield in addition - we hope that there is sufficient immediate financial upside for these users. But we also want to focus on $NOON’s non-financial value to users - primarily, governance, since this will be such a critical component of our protocol going forward.

We recognise these are meaningful limitations—but believe they’re acceptable in the short term to prioritise governance quality over speculation.

Future transferability

Non-transferability is temporary, not permanent.

Our current plan is to enable transferability by the end of 2025, contingent on:

• Strong and consistent community participation

• Development of robust sybil resistance mechanisms

• A maturing governance ecosystem

• Favorable market conditions

When enabled, transferability will allow $NOON to function more broadly within Web3—as a liquid, tradable governance asset—while preserving the foundational values built during its non-transferable phase.

How to engage with us

We’re designing Noon for the community. Your input is critical.

Here’s how you can get involved:

• 💬 Join the discussion on our Governance Forum
  Dive into the thread and share your thoughts about non-transferability.

• 📥 Stake your $NOON after TGE
  Start earning boosted rewards, vote power, and governance rights.

• 🗳️ Vote on proposals
  Decisions like this will go to a community vote in our Governance Portal (coming soon). Make your voice heard.

• 🧵 Connect on socials
  Share feedback and ideas with the core team and fellow users on Discord, Twitter, and Telegram.

To Noon and back, your yield, your TGE.

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