Systems and methods are disclosed for a consensus-based node retirement in a mesh network. An example system includes: a mesh network comprising a plurality of nodes, including a first node, a second node, and a mesh controller; a processor; and memory. The memory may store instructions that, when executed by the one or more processors, may cause the first node to: send, to the second node, a request for a performance status; and receive a response to the request; and identify a deficiency in a performance metric of the second node. The deficiency may be based on a failure of the performance metric of the second node to satisfy a first membership rule of a mesh membership contract. After a consensus by the mesh network for the identified deficiency, the first node may cause a removal of one or more capabilities of the second node from the mesh network.