Recently I read about $NIL Most important developments Nillion’s Blacklight node migration to Ethereum Layer 1 then here here a question Rose in my mind Why Blacklight node Need to migrate to Ethereum L1 ? Then searched more about it and what i found let's try to understand 👇

Nillion is migrating Blacklight nodes from its own L2 to Ethereum Layer 1 mainly because its new Covenant system is being built to operate directly on Ethereum mainnet. This connects the node network more closely to where Covenants are created, resolved and executed.

Why is the migration necessary?

1. Direct connection to Ethereum
Blacklight L1 operates directly on Ethereum, where Covenant instructions can be resolved onchain. This avoids relying on the old Blacklight L2 as the operating network for the new system.

2. Support encrypted Covenants
Nodes hold separate encrypted shares of an instruction. When its condition is met they publish their shares so the payload can be reconstructed and verified on Ethereum. A single node cannot independently reconstruct the full payload.

3. Align node operations with the new architecture
As Dusk and Covenants move toward mainnet, the old Blacklight L2 is planned to be retired. Operators need to register on L1; existing testnet registrations do not transfer automatically.

4. Move rewards to Ethereum
The official migration announcement describes L1 rewards from 0.5% annual inflation plus Covenant trigger fees. Operators also need ETH for gas. Rewards are not guaranteed profits, and NIL in transit does not earn rewards during migration.

What does this mean for $NIL holders?

Node operators: Must migrate their stake and register on Blacklight L1 to participate in the new setup.

Ordinary holders. This announcement does not mean every NIL holder must migrate automatically the instructions are specifically for Blacklight node participants.

For the token. Node staking and Covenant trigger fees create potential utility, but the migration alone does not prove that NIL’s price will rise.

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