NNS Simplified: Understanding the Network Nervous System on ICP

December 5, 2024

NNS Simplified: Understanding the Network Nervous System on ICP

When you think about blockchain governance, it might sound complicated, but on the Internet Computer Protocol (ICP), it’s made simple through the Network Nervous System (NNS). Imagine having a say in how a blockchain runs, just like voting in a community meeting. That’s what the NNS allows you to do, and here’s how it works in straightforward terms.

What Exactly is the NNS?

  • 1 Billion+ ICP Tokens Locked: Over 60% of the total ICP supply is locked in Neurons, showing strong community participation.
  • 700,000+ Proposals Processed: Since launch, the NNS has handled more governance proposals than many traditional organizations.
  • Rewards Distribution: Active participants in the NNS earn governance rewards, incentivizing engagement and accountability.

The NNS is the decentralized brain of the Internet Computer Protocol. It’s responsible for managing the entire network—upgrading it, fixing bugs, and even adding new features. Think of it as the operations team of a company, except it’s run by the community instead of a few executives.

Using the NNS, you can:

  • Propose changes to the ICP network.
  • Vote on those changes.
  • Influence how resources are allocated across the ecosystem.

How Does the NNS Work?

It’s simple: you need ICP tokens to participate. These tokens can be locked in what’s called a Neuron, which is like a virtual ballot box. The more tokens you lock and the longer you commit to keeping them locked, the more voting power you get.

Here’s a step-by-step:

  1. Lock ICP tokens in a Neuron.
  2. Use your Neuron to vote on proposals or let it follow other Neurons for automatic voting.
  3. Earn rewards for participating in governance.

As of now, the NNS has processed over 700,000 proposals since ICP launched, showing how active the community is in shaping the network’s future.

What About SNS? How Is It Different?

While the NNS governs the entire Internet Computer network, the Service Nervous System (SNS) is designed for individual decentralized applications (dApps).

The NNS is responsible for overall governance, upgrades, and decisions related to the entire ICP network. It’s the mechanism through which the ICP community collectively governs the infrastructure that supports all decentralized applications on the network.

On the other hand, the SNS is a governance system for specific dApps built on ICP. It enables individual dApp developers to decentralize control of their projects, allowing their users to take part in the governance of the application itself. This means that a dApp’s community can directly influence decisions like feature changes, tokenomics, and more.

In essence, the NNS is like a country’s government, while the SNS acts as a local government for specific applications. The SNS gives developers a framework to decentralize their projects and let their communities take charge.

Why Should You Care About the NNS?

The NNS puts the power in your hands. Instead of decisions being made by a few individuals, anyone with ICP tokens can have a voice. This is critical for a decentralized internet where control isn’t concentrated in the hands of a few corporations.

For example, through the NNS, the community recently approved upgrades that made ICP a powerful Bitcoin Layer 2. This decision allows developers to build apps that interact directly with the Bitcoin blockchain—a game-changer for decentralized finance.

What Makes the NNS Unique?

Decentralized Control: No single entity owns or controls ICP. The community governs it collectively.

Transparency: Every decision, from upgrading the network to setting rewards, is visible on the blockchain.

Automation: The NNS operates autonomously, implementing decisions without human intervention, and reducing delays and errors.


CONCLUSION

The Network Nervous System (NNS) is set to play an increasingly vital role as the Internet Computer expands. In 2025, expect significant upgrades, broader adoption of ICP as a governance platform, and greater rewards for active participants. Engaging with the NNS goes beyond voting on blockchain upgrades—it’s about actively building the decentralized internet.

The NNS simplifies governance, empowering users, while the Service Nervous System (SNS) decentralizes control for individual applications, driving true Web3 innovation. Whether you're new to the Internet Computer or an experienced user, participating in the NNS and SNS allows you to shape its future.

Lock your tokens, join the conversation, and make your voice heard in one of the most innovative blockchain ecosystems as you help build the future of the decentralized web.


Article by: Mana Lamja