diff --git a/deployment/network-operator/charts/nic-configuration-operator-chart/templates/config-daemon.yaml b/deployment/network-operator/charts/nic-configuration-operator-chart/templates/config-daemon.yaml
new file mode 100644
index 000000000..9715cd0fc
--- /dev/null
+++ b/deployment/network-operator/charts/nic-configuration-operator-chart/templates/config-daemon.yaml
@@ -0,0 +1,68 @@
+apiVersion: apps/v1
+kind: DaemonSet
+metadata:
+  name: nic-configuration-daemon
+  namespace: {{ .Release.Namespace }}
+  labels:
+    app.kubernetes.io/name: nic-configuration-daemon
+    app.kubernetes.io/created-by: nic-configuration-operator
+    app.kubernetes.io/part-of: nic-configuration-operator
+    {{- include "nic-configuration-operator.labels" . | nindent 4 }}
+spec:
+  selector:
+    matchLabels:
+      control-plane: nic-configuration-daemon
+      {{- include "nic-configuration-operator.selectorLabels" . | nindent 6 }}
+  template:
+    metadata:
+      annotations:
+        kubectl.kubernetes.io/default-container: nic-configuration-daemon
+      labels:
+        control-plane: nic-configuration-daemon
+        {{- include "nic-configuration-operator.selectorLabels" . | nindent 8 }}
+    spec:
+      nodeSelector: {{- toYaml .Values.operator.nodeSelector | nindent 8 }}
+      serviceAccountName: {{ include "nic-configuration-operator.serviceAccountName" . }}
+      terminationGracePeriodSeconds: 10
+      hostNetwork: true
+      hostPID: true
+      priorityClassName: system-node-critical
+      containers:
+        - image: "{{ .Values.configDaemon.image.repository }}/{{ .Values.configDaemon.image.name }}:{{ .Values.configDaemon.image.tag | default .Chart.AppVersion }}"
+          name: nic-configuration-daemon
+          securityContext:
+            privileged: true
+          resources: {{- toYaml .Values.configDaemon.resources | nindent 12 }}
+          env:
+            - name: NODE_NAME
+              valueFrom:
+                fieldRef:
+                  fieldPath: spec.nodeName
+            - name: NAMESPACE
+              valueFrom:
+                fieldRef:
+                  fieldPath: metadata.namespace
+            {{- if .Values.logLevel}}
+            - name: LOG_LEVEL
+              value: {{ .Values.logLevel }}
+            {{- end}}
+          volumeMounts:
+            - name: sys
+              mountPath: /sys
+              readOnly: false
+            - name: proc
+              mountPath: /proc
+              readOnly: false
+            - name: host
+              mountPath: /host
+              readOnly: true
+      volumes:
+        - name: sys
+          hostPath:
+            path: /sys
+        - name: proc
+          hostPath:
+            path: /proc
+        - name: host
+          hostPath:
+            path: /
diff --git a/deployment/network-operator/charts/nic-configuration-operator-chart/templates/nic-configuration-operator-configmap.yaml b/deployment/network-operator/charts/nic-configuration-operator-chart/templates/nic-configuration-operator-configmap.yaml
deleted file mode 100644
index 6e4b4c039..000000000
--- a/deployment/network-operator/charts/nic-configuration-operator-chart/templates/nic-configuration-operator-configmap.yaml
+++ /dev/null
@@ -1,20 +0,0 @@
-apiVersion: v1
-kind: ConfigMap
-metadata:
-  name: nic-configuration-operator-config
-data:
-  serviceAccountName: "{{ include "nic-configuration-operator.serviceAccountName" . }}"
-  configDaemonImage: "{{ .Values.configDaemon.image.repository }}/{{ .Values.configDaemon.image.name }}:{{ .Values.configDaemon.image.tag | default .Chart.AppVersion }}"
-  {{- if .Values.imagePullSecrets}}
-  imagePullSecrets: {{ join "," .Values.imagePullSecrets }}
-  {{- end}}
-  {{- if .Values.configDaemon.nodeSelector}}
-  nodeSelector: {{ .Values.configDaemon.nodeSelector | toJson | quote }}
-  {{- end}}
-  {{- if .Values.configDaemon.resources}}
-  resources: {{ .Values.configDaemon.resources | toJson | quote }}
-  {{- end}}
-  {{- if .Values.logLevel}}
-  logLevel: {{ .Values.logLevel }}
-  {{- end}}
-  clusterType: vanilla
diff --git a/deployment/network-operator/charts/nic-configuration-operator-chart/templates/operator.yaml b/deployment/network-operator/charts/nic-configuration-operator-chart/templates/operator.yaml
index 25ed38b20..0358a6d15 100644
--- a/deployment/network-operator/charts/nic-configuration-operator-chart/templates/operator.yaml
+++ b/deployment/network-operator/charts/nic-configuration-operator-chart/templates/operator.yaml
@@ -40,11 +40,11 @@ spec:
             capabilities:
               drop:
                 - ALL
+          {{- if .Values.logLevel}}
           env:
-            - name: NAMESPACE
-              valueFrom:
-                fieldRef:
-                  fieldPath: metadata.namespace
+            - name: LOG_LEVEL
+              value: {{ .Values.logLevel }}
+          {{- end}}
           livenessProbe:
             httpGet:
               path: /healthz
diff --git a/deployment/network-operator/charts/nic-configuration-operator-chart/templates/role.yaml b/deployment/network-operator/charts/nic-configuration-operator-chart/templates/role.yaml
index 2184c7742..fbffac7a9 100644
--- a/deployment/network-operator/charts/nic-configuration-operator-chart/templates/role.yaml
+++ b/deployment/network-operator/charts/nic-configuration-operator-chart/templates/role.yaml
@@ -11,8 +11,6 @@ rules:
     - configmaps
   verbs:
     - get
-    - list
-    - watch
 - apiGroups:
     - ""
   resources:
@@ -105,15 +103,3 @@ rules:
     - patch
     - update
     - watch
-- apiGroups:
-    - apps
-  resources:
-    - daemonsets
-  verbs:
-    - create
-    - delete
-    - get
-    - list
-    - patch
-    - update
-    - watch
diff --git a/deployment/network-operator/values.yaml b/deployment/network-operator/values.yaml
index bbfb4fa2d..6720de944 100644
--- a/deployment/network-operator/values.yaml
+++ b/deployment/network-operator/values.yaml
@@ -178,12 +178,12 @@ nic-configuration-operator-chart:
     image:
       repository: ghcr.io/mellanox
       name: nic-configuration-operator
-      tag: v0.1.15
+      tag: v0.1.17
   configDaemon:
     image:
       repository: ghcr.io/mellanox
       name: nic-configuration-operator-daemon
-      tag: v0.1.15
+      tag: v0.1.17
 
 # Maintenance Operator chart related values.
 maintenance-operator-chart:
diff --git a/hack/release.yaml b/hack/release.yaml
index 9c4b6eca6..760de4f38 100644
--- a/hack/release.yaml
+++ b/hack/release.yaml
@@ -81,11 +81,11 @@ rdmaCni:
 nicConfigurationOperator:
   image: nic-configuration-operator
   repository: ghcr.io/mellanox
-  version: v0.1.15
+  version: v0.1.17
 nicConfigurationConfigDaemon:
   image: nic-configuration-operator-daemon
   repository: ghcr.io/mellanox
-  version: v0.1.15
+  version: v0.1.17
 maintenanceOperator:
   image: maintenance-operator
   repository: ghcr.io/mellanox