diff --git a/nym-api/src/epoch_operations/rewarded_set_assignment.rs b/nym-api/src/epoch_operations/rewarded_set_assignment.rs
index 40c1124b05..d513579ef2 100644
--- a/nym-api/src/epoch_operations/rewarded_set_assignment.rs
+++ b/nym-api/src/epoch_operations/rewarded_set_assignment.rs
@@ -6,7 +6,9 @@ use crate::epoch_operations::helpers::stake_to_f64;
 use crate::EpochAdvancer;
 use cosmwasm_std::Decimal;
 use nym_mixnet_contract_common::reward_params::{Performance, RewardedSetParams};
-use nym_mixnet_contract_common::{EpochState, NodeId, NymNodeDetails, RewardedSet};
+use nym_mixnet_contract_common::{
+    EpochState, NodeId, NymNodeDetails, RewardedSet, RewardingParams,
+};
 use rand::prelude::SliceRandom;
 use rand::rngs::OsRng;
 use std::collections::HashSet;
@@ -25,14 +27,14 @@ enum AvailableRole {
 }
 
 #[derive(Debug, Clone)]
-struct NodeWithStakeAndPerformance {
+struct NodeWithSaturationAndPerformance {
     node_id: NodeId,
     available_roles: Vec<AvailableRole>,
-    total_stake: Decimal,
+    saturation: Decimal,
     performance: Performance,
 }
 
-impl NodeWithStakeAndPerformance {
+impl NodeWithSaturationAndPerformance {
     fn to_selection_weight(&self) -> f64 {
         let scaled_performance = match self.performance.checked_pow(20) {
             Ok(perf) => perf,
@@ -42,7 +44,7 @@ impl NodeWithStakeAndPerformance {
             }
         };
 
-        let scaled_stake = self.total_stake * scaled_performance;
+        let scaled_stake = self.saturation * scaled_performance;
         stake_to_f64(scaled_stake)
     }
 
@@ -62,7 +64,7 @@ impl NodeWithStakeAndPerformance {
 impl EpochAdvancer {
     fn determine_rewarded_set(
         &self,
-        nodes: Vec<NodeWithStakeAndPerformance>,
+        nodes: Vec<NodeWithSaturationAndPerformance>,
         spec: RewardedSetParams,
     ) -> Result<RewardedSet, RewardingError> {
         if nodes.is_empty() {
@@ -204,7 +206,8 @@ impl EpochAdvancer {
     async fn attach_performance_to_eligible_nodes(
         &self,
         nym_nodes: &[NymNodeDetails],
-    ) -> Vec<NodeWithStakeAndPerformance> {
+        reward_params: &RewardingParams,
+    ) -> Vec<NodeWithSaturationAndPerformance> {
         let mut with_performance = Vec::new();
 
         // SAFETY: the cache MUST HAVE been initialised before now
@@ -218,7 +221,7 @@ impl EpochAdvancer {
 
         for nym_node in nym_nodes {
             let node_id = nym_node.node_id();
-            let total_stake = nym_node.total_stake();
+            let saturation = nym_node.rewarding_details.bond_saturation(reward_params);
 
             let Some(self_described) = described_cache.get_description(&node_id) else {
                 continue;
@@ -230,7 +233,7 @@ impl EpochAdvancer {
             };
 
             let performance = annotation.detailed_performance.to_rewarding_performance();
-            debug!("nym-node {node_id}: stake: {total_stake}, performance: {performance}");
+            debug!("nym-node {node_id}: saturation: {saturation}, performance: {performance}");
 
             let mut available_roles = Vec::new();
             if self_described.declared_role.mixnode {
@@ -248,10 +251,10 @@ impl EpochAdvancer {
                 continue;
             }
 
-            with_performance.push(NodeWithStakeAndPerformance {
+            with_performance.push(NodeWithSaturationAndPerformance {
                 node_id: nym_node.node_id(),
                 available_roles,
-                total_stake,
+                saturation,
                 performance,
             })
         }
@@ -273,13 +276,8 @@ impl EpochAdvancer {
                 }
 
                 info!("attempting to assign the rewarded set for the upcoming epoch...");
-                let nodes_with_performance =
-                    self.attach_performance_to_eligible_nodes(nym_nodes).await;
 
-                if let Err(err) = self
-                    ._update_rewarded_set_and_advance_epoch(nodes_with_performance)
-                    .await
-                {
+                if let Err(err) = self._update_rewarded_set_and_advance_epoch(nym_nodes).await {
                     error!("FAILED to assign the rewarded set... - {err}");
                     Err(err)
                 } else {
@@ -300,15 +298,19 @@ impl EpochAdvancer {
 
     async fn _update_rewarded_set_and_advance_epoch(
         &self,
-        all_nodes: Vec<NodeWithStakeAndPerformance>,
+        nym_nodes: &[NymNodeDetails],
     ) -> Result<(), RewardingError> {
         // we grab rewarding parameters here as they might have gotten updated when performing epoch actions
         let rewarding_parameters = self.nyxd_client.get_current_rewarding_parameters().await?;
 
         debug!("Rewarding parameters: {rewarding_parameters:?}");
 
+        let nodes_with_performance = self
+            .attach_performance_to_eligible_nodes(nym_nodes, &rewarding_parameters)
+            .await;
+
         let new_rewarded_set =
-            self.determine_rewarded_set(all_nodes, rewarding_parameters.rewarded_set)?;
+            self.determine_rewarded_set(nodes_with_performance, rewarding_parameters.rewarded_set)?;
 
         debug!("New rewarded set: {:?}", new_rewarded_set);
 
diff --git a/nym-wallet/Cargo.lock b/nym-wallet/Cargo.lock
index 802ced4e1e..3efcb8f461 100644
--- a/nym-wallet/Cargo.lock
+++ b/nym-wallet/Cargo.lock
@@ -1326,6 +1326,12 @@ dependencies = [
  "cfg-if",
 ]
 
+[[package]]
+name = "critical-section"
+version = "1.2.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "790eea4361631c5e7d22598ecd5723ff611904e3344ce8720784c93e3d83d40b"
+
 [[package]]
 name = "crossbeam-channel"
 version = "0.5.15"
@@ -2458,6 +2464,19 @@ dependencies = [
  "x11",
 ]
 
+[[package]]
+name = "generator"
+version = "0.8.4"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "cc6bd114ceda131d3b1d665eba35788690ad37f5916457286b32ab6fd3c438dd"
+dependencies = [
+ "cfg-if",
+ "libc",
+ "log",
+ "rustversion",
+ "windows 0.58.0",
+]
+
 [[package]]
 name = "generic-array"
 version = "0.14.7"
@@ -2849,57 +2868,59 @@ checksum = "7ebdb29d2ea9ed0083cd8cece49bbd968021bd99b0849edb4a9a7ee0fdf6a4e0"
 
 [[package]]
 name = "hickory-proto"
-version = "0.24.4"
+version = "0.25.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "92652067c9ce6f66ce53cc38d1169daa36e6e7eb7dd3b63b5103bd9d97117248"
+checksum = "6d844af74f7b799e41c78221be863bade11c430d46042c3b49ca8ae0c6d27287"
 dependencies = [
+ "async-recursion",
  "async-trait",
  "bytes",
  "cfg-if",
+ "critical-section",
  "data-encoding",
  "enum-as-inner",
  "futures-channel",
  "futures-io",
  "futures-util",
- "h2 0.3.26",
- "http 0.2.12",
+ "h2 0.4.8",
+ "http 1.3.1",
  "idna",
  "ipnet",
  "once_cell",
- "rand 0.8.5",
- "rustls 0.21.12",
- "rustls-pemfile 1.0.4",
- "thiserror 1.0.69",
+ "rand 0.9.0",
+ "ring",
+ "rustls 0.23.25",
+ "thiserror 2.0.12",
  "tinyvec",
  "tokio",
- "tokio-rustls 0.24.1",
+ "tokio-rustls 0.26.2",
  "tracing",
  "url",
- "webpki-roots 0.25.4",
+ "webpki-roots",
 ]
 
 [[package]]
 name = "hickory-resolver"
-version = "0.24.4"
+version = "0.25.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "cbb117a1ca520e111743ab2f6688eddee69db4e0ea242545a604dce8a66fd22e"
+checksum = "a128410b38d6f931fcc6ca5c107a3b02cabd6c05967841269a4ad65d23c44331"
 dependencies = [
  "cfg-if",
  "futures-util",
  "hickory-proto",
  "ipconfig",
- "lru-cache",
+ "moka",
  "once_cell",
  "parking_lot",
- "rand 0.8.5",
+ "rand 0.9.0",
  "resolv-conf",
- "rustls 0.21.12",
+ "rustls 0.23.25",
  "smallvec",
- "thiserror 1.0.69",
+ "thiserror 2.0.12",
  "tokio",
- "tokio-rustls 0.24.1",
+ "tokio-rustls 0.26.2",
  "tracing",
- "webpki-roots 0.25.4",
+ "webpki-roots",
 ]
 
 [[package]]
@@ -3102,7 +3123,7 @@ dependencies = [
  "tokio",
  "tokio-rustls 0.26.2",
  "tower-service",
- "webpki-roots 0.26.8",
+ "webpki-roots",
 ]
 
 [[package]]
@@ -3641,12 +3662,6 @@ dependencies = [
  "redox_syscall",
 ]
 
-[[package]]
-name = "linked-hash-map"
-version = "0.5.6"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "0717cef1bc8b636c6e1c1bbdefc09e6322da8a9321966e8928ef80d20f7f770f"
-
 [[package]]
 name = "linux-raw-sys"
 version = "0.4.15"
@@ -3685,12 +3700,16 @@ dependencies = [
 ]
 
 [[package]]
-name = "lru-cache"
-version = "0.1.2"
+name = "loom"
+version = "0.7.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "31e24f1ad8321ca0e8a1e0ac13f23cb668e6f5466c2c57319f6a5cf1cc8e3b1c"
+checksum = "419e0dc8046cb947daa77eb95ae174acfbddb7673b4151f56d1eed8e93fbfaca"
 dependencies = [
- "linked-hash-map",
+ "cfg-if",
+ "generator",
+ "scoped-tls",
+ "tracing",
+ "tracing-subscriber",
 ]
 
 [[package]]
@@ -3713,6 +3732,15 @@ dependencies = [
  "tendril",
 ]
 
+[[package]]
+name = "matchers"
+version = "0.1.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "8263075bb86c5a1b1427b5ae862e8889656f126e9f77c484496e8b47cf5c5558"
+dependencies = [
+ "regex-automata 0.1.10",
+]
+
 [[package]]
 name = "matches"
 version = "0.1.10"
@@ -3773,6 +3801,25 @@ dependencies = [
  "windows-sys 0.52.0",
 ]
 
+[[package]]
+name = "moka"
+version = "0.12.10"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "a9321642ca94a4282428e6ea4af8cc2ca4eac48ac7a6a4ea8f33f76d0ce70926"
+dependencies = [
+ "crossbeam-channel",
+ "crossbeam-epoch",
+ "crossbeam-utils",
+ "loom",
+ "parking_lot",
+ "portable-atomic",
+ "rustc_version",
+ "smallvec",
+ "tagptr",
+ "thiserror 1.0.69",
+ "uuid",
+]
+
 [[package]]
 name = "muda"
 version = "0.16.1"
@@ -3876,6 +3923,16 @@ dependencies = [
  "minimal-lexical",
 ]
 
+[[package]]
+name = "nu-ansi-term"
+version = "0.46.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "77a8165726e8236064dbb45459242600304b42a5ea24ee2948e18e023bf7ba84"
+dependencies = [
+ "overload",
+ "winapi",
+]
+
 [[package]]
 name = "num-bigint"
 version = "0.4.6"
@@ -4647,6 +4704,10 @@ name = "once_cell"
 version = "1.21.3"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "42f5e15c9953c5e4ccceeb2e7382a716482c34515315f7b03532b8b4e8393d2d"
+dependencies = [
+ "critical-section",
+ "portable-atomic",
+]
 
 [[package]]
 name = "opaque-debug"
@@ -4750,6 +4811,12 @@ dependencies = [
  "thiserror 2.0.12",
 ]
 
+[[package]]
+name = "overload"
+version = "0.1.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "b15813163c1d831bf4a13c3610c05c0d03b39feb07f7e09fa234dac9b15aaf39"
+
 [[package]]
 name = "p256"
 version = "0.13.2"
@@ -5193,6 +5260,12 @@ dependencies = [
  "universal-hash",
 ]
 
+[[package]]
+name = "portable-atomic"
+version = "1.11.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "350e9b48cbc6b0e028b0473b114454c6316e57336ee184ceab6e53f72c178b3e"
+
 [[package]]
 name = "powerfmt"
 version = "0.2.0"
@@ -5620,8 +5693,17 @@ checksum = "b544ef1b4eac5dc2db33ea63606ae9ffcfac26c1416a2806ae0bf5f56b201191"
 dependencies = [
  "aho-corasick",
  "memchr",
- "regex-automata",
- "regex-syntax",
+ "regex-automata 0.4.9",
+ "regex-syntax 0.8.5",
+]
+
+[[package]]
+name = "regex-automata"
+version = "0.1.10"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "6c230d73fb8d8c1b9c0b3135c5142a8acee3a0558fb8db5cf1cb65f8d7862132"
+dependencies = [
+ "regex-syntax 0.6.29",
 ]
 
 [[package]]
@@ -5632,9 +5714,15 @@ checksum = "809e8dc61f6de73b46c85f4c96486310fe304c434cfa43669d7b40f711150908"
 dependencies = [
  "aho-corasick",
  "memchr",
- "regex-syntax",
+ "regex-syntax 0.8.5",
 ]
 
+[[package]]
+name = "regex-syntax"
+version = "0.6.29"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "f162c6dd7b008981e4d40210aca20b4bd0f9b60ca9271061b07f78537722f2e1"
+
 [[package]]
 name = "regex-syntax"
 version = "0.8.5"
@@ -5730,7 +5818,7 @@ dependencies = [
  "wasm-bindgen-futures",
  "wasm-streams",
  "web-sys",
- "webpki-roots 0.26.8",
+ "webpki-roots",
  "windows-registry",
 ]
 
@@ -5872,6 +5960,7 @@ version = "0.23.25"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "822ee9188ac4ec04a2f0531e55d035fb2de73f18b41a63c70c2712503b6fb13c"
 dependencies = [
+ "log",
  "once_cell",
  "ring",
  "rustls-pki-types",
@@ -5997,6 +6086,12 @@ dependencies = [
  "syn 2.0.100",
 ]
 
+[[package]]
+name = "scoped-tls"
+version = "1.0.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "e1cf6437eb19a8f4a6cc0f7dca544973b0b78843adbfeb3683d1a94a0024a294"
+
 [[package]]
 name = "scopeguard"
 version = "1.2.0"
@@ -6308,6 +6403,15 @@ dependencies = [
  "digest 0.10.7",
 ]
 
+[[package]]
+name = "sharded-slab"
+version = "0.1.7"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "f40ca3c46823713e0d4209592e8d6e826aa57e928f09752619fc696c499637f6"
+dependencies = [
+ "lazy_static",
+]
+
 [[package]]
 name = "shared_child"
 version = "1.0.1"
@@ -6666,6 +6770,12 @@ dependencies = [
  "version-compare",
 ]
 
+[[package]]
+name = "tagptr"
+version = "0.2.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "7b2093cf4c8eb1e67749a6762251bc9cd836b6fc171623bd0a9d324d37af2417"
+
 [[package]]
 name = "tao"
 version = "0.32.8"
@@ -7235,6 +7345,16 @@ dependencies = [
  "syn 2.0.100",
 ]
 
+[[package]]
+name = "thread_local"
+version = "1.1.8"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "8b9ef9bad013ada3808854ceac7b46812a6465ba368859a37e2100283d2d719c"
+dependencies = [
+ "cfg-if",
+ "once_cell",
+]
+
 [[package]]
 name = "tiff"
 version = "0.9.1"
@@ -7497,6 +7617,36 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "e672c95779cf947c5311f83787af4fa8fffd12fb27e4993211a84bdfd9610f9c"
 dependencies = [
  "once_cell",
+ "valuable",
+]
+
+[[package]]
+name = "tracing-log"
+version = "0.2.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "ee855f1f400bd0e5c02d150ae5de3840039a3f54b025156404e34c23c03f47c3"
+dependencies = [
+ "log",
+ "once_cell",
+ "tracing-core",
+]
+
+[[package]]
+name = "tracing-subscriber"
+version = "0.3.19"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "e8189decb5ac0fa7bc8b96b7cb9b2701d60d48805aca84a238004d665fcc4008"
+dependencies = [
+ "matchers",
+ "nu-ansi-term",
+ "once_cell",
+ "regex",
+ "sharded-slab",
+ "smallvec",
+ "thread_local",
+ "tracing",
+ "tracing-core",
+ "tracing-log",
 ]
 
 [[package]]
@@ -7757,6 +7907,12 @@ dependencies = [
  "serde",
 ]
 
+[[package]]
+name = "valuable"
+version = "0.1.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "ba73ea9cf16a25df0c8caa16c51acb937d5712a8429db78a3ee29d5dcacd3a65"
+
 [[package]]
 name = "vcpkg"
 version = "0.2.15"
@@ -8082,12 +8238,6 @@ dependencies = [
  "system-deps",
 ]
 
-[[package]]
-name = "webpki-roots"
-version = "0.25.4"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "5f20c57d8d7db6d3b86154206ae5d8fba62dd39573114de97c2cb0578251f8e1"
-
 [[package]]
 name = "webpki-roots"
 version = "0.26.8"
@@ -8108,7 +8258,7 @@ dependencies = [
  "windows 0.60.0",
  "windows-core 0.60.1",
  "windows-implement 0.59.0",
- "windows-interface",
+ "windows-interface 0.59.1",
 ]
 
 [[package]]
@@ -8201,6 +8351,16 @@ dependencies = [
  "windows-targets 0.52.6",
 ]
 
+[[package]]
+name = "windows"
+version = "0.58.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "dd04d41d93c4992d421894c18c8b43496aa748dd4c081bac0dc93eb0489272b6"
+dependencies = [
+ "windows-core 0.58.0",
+ "windows-targets 0.52.6",
+]
+
 [[package]]
 name = "windows"
 version = "0.60.0"
@@ -8232,6 +8392,19 @@ dependencies = [
  "windows-targets 0.52.6",
 ]
 
+[[package]]
+name = "windows-core"
+version = "0.58.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "6ba6d44ec8c2591c134257ce647b7ea6b20335bf6379a27dac5f1641fcf59f99"
+dependencies = [
+ "windows-implement 0.58.0",
+ "windows-interface 0.58.0",
+ "windows-result 0.2.0",
+ "windows-strings 0.1.0",
+ "windows-targets 0.52.6",
+]
+
 [[package]]
 name = "windows-core"
 version = "0.60.1"
@@ -8239,9 +8412,9 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "ca21a92a9cae9bf4ccae5cf8368dce0837100ddf6e6d57936749e85f152f6247"
 dependencies = [
  "windows-implement 0.59.0",
- "windows-interface",
+ "windows-interface 0.59.1",
  "windows-link",
- "windows-result",
+ "windows-result 0.3.2",
  "windows-strings 0.3.1",
 ]
 
@@ -8252,9 +8425,9 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "4763c1de310c86d75a878046489e2e5ba02c649d185f21c67d4cf8a56d098980"
 dependencies = [
  "windows-implement 0.60.0",
- "windows-interface",
+ "windows-interface 0.59.1",
  "windows-link",
- "windows-result",
+ "windows-result 0.3.2",
  "windows-strings 0.4.0",
 ]
 
@@ -8268,6 +8441,17 @@ dependencies = [
  "windows-link",
 ]
 
+[[package]]
+name = "windows-implement"
+version = "0.58.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "2bbd5b46c938e506ecbce286b6628a02171d56153ba733b6c741fc627ec9579b"
+dependencies = [
+ "proc-macro2",
+ "quote",
+ "syn 2.0.100",
+]
+
 [[package]]
 name = "windows-implement"
 version = "0.59.0"
@@ -8290,6 +8474,17 @@ dependencies = [
  "syn 2.0.100",
 ]
 
+[[package]]
+name = "windows-interface"
+version = "0.58.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "053c4c462dc91d3b1504c6fe5a726dd15e216ba718e84a0e46a88fbe5ded3515"
+dependencies = [
+ "proc-macro2",
+ "quote",
+ "syn 2.0.100",
+]
+
 [[package]]
 name = "windows-interface"
 version = "0.59.1"
@@ -8323,11 +8518,20 @@ version = "0.4.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "4286ad90ddb45071efd1a66dfa43eb02dd0dfbae1545ad6cc3c51cf34d7e8ba3"
 dependencies = [
- "windows-result",
+ "windows-result 0.3.2",
  "windows-strings 0.3.1",
  "windows-targets 0.53.0",
 ]
 
+[[package]]
+name = "windows-result"
+version = "0.2.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "1d1043d8214f791817bab27572aaa8af63732e11bf84aa21a45a78d6c317ae0e"
+dependencies = [
+ "windows-targets 0.52.6",
+]
+
 [[package]]
 name = "windows-result"
 version = "0.3.2"
@@ -8337,6 +8541,16 @@ dependencies = [
  "windows-link",
 ]
 
+[[package]]
+name = "windows-strings"
+version = "0.1.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "4cd9b125c486025df0eabcb585e62173c6c9eddcec5d117d3b6e8c30e2ee4d10"
+dependencies = [
+ "windows-result 0.2.0",
+ "windows-targets 0.52.6",
+]
+
 [[package]]
 name = "windows-strings"
 version = "0.3.1"