diff --git a/packages/frontend/@n8n/design-system/src/directives/n8n-smart-decimal.test.ts b/packages/frontend/@n8n/design-system/src/directives/n8n-smart-decimal.test.ts
index 2071ddcf2b..62660e9d32 100644
--- a/packages/frontend/@n8n/design-system/src/directives/n8n-smart-decimal.test.ts
+++ b/packages/frontend/@n8n/design-system/src/directives/n8n-smart-decimal.test.ts
@@ -11,7 +11,7 @@ describe('Directive n8n-truncate', () => {
 						type: String,
 					},
 				},
-				template: '<p v-n8n-smart-decimal>{{text}}</p>',
+				template: '<p v-n8n-smart-decimal="text" />',
 			},
 			{
 				props: {
@@ -35,7 +35,7 @@ describe('Directive n8n-truncate', () => {
 						type: String,
 					},
 				},
-				template: '<p v-n8n-smart-decimal:3>{{text}}</p>',
+				template: '<p v-n8n-smart-decimal:3="text" />',
 			},
 			{
 				props: {
@@ -59,7 +59,7 @@ describe('Directive n8n-truncate', () => {
 						type: String,
 					},
 				},
-				template: '<p v-n8n-smart-decimal>{{text}}</p>',
+				template: '<p v-n8n-smart-decimal="text" />',
 			},
 			{
 				props: {
@@ -83,7 +83,7 @@ describe('Directive n8n-truncate', () => {
 						type: String,
 					},
 				},
-				template: '<p v-n8n-smart-decimal>{{text}}</p>',
+				template: '<p v-n8n-smart-decimal="text">',
 			},
 			{
 				props: {
@@ -107,7 +107,7 @@ describe('Directive n8n-truncate', () => {
 						type: String,
 					},
 				},
-				template: '<p v-n8n-smart-decimal:1>{{text}}</p>',
+				template: '<p v-n8n-smart-decimal:1="text">',
 			},
 			{
 				props: {
@@ -131,7 +131,7 @@ describe('Directive n8n-truncate', () => {
 						type: String,
 					},
 				},
-				template: '<p v-n8n-smart-decimal:3>{{text}}</p>',
+				template: '<p v-n8n-smart-decimal:3="text" />',
 			},
 			{
 				props: {
@@ -155,7 +155,7 @@ describe('Directive n8n-truncate', () => {
 						type: String,
 					},
 				},
-				template: '<p v-n8n-smart-decimal>{{text}}</p>',
+				template: '<p v-n8n-smart-decimal="text" />',
 			},
 			{
 				props: {
@@ -179,7 +179,7 @@ describe('Directive n8n-truncate', () => {
 						type: String,
 					},
 				},
-				template: '<p v-n8n-smart-decimal>{{text}}</p>',
+				template: '<p v-n8n-smart-decimal="text" />',
 			},
 			{
 				props: {
@@ -203,7 +203,7 @@ describe('Directive n8n-truncate', () => {
 						type: String,
 					},
 				},
-				template: '<p v-n8n-smart-decimal:5>{{text}}</p>',
+				template: '<p v-n8n-smart-decimal:5="text" />',
 			},
 			{
 				props: {
@@ -227,7 +227,7 @@ describe('Directive n8n-truncate', () => {
 						type: String,
 					},
 				},
-				template: '<p v-n8n-smart-decimal:3>{{text}}</p>',
+				template: '<p v-n8n-smart-decimal:3="text" />',
 			},
 			{
 				props: {
@@ -242,4 +242,32 @@ describe('Directive n8n-truncate', () => {
 		);
 		expect(html()).toBe('<p>42.12</p>');
 	});
+
+	it('rendered html should update when the value changes', async () => {
+		const { html, rerender } = render(
+			{
+				props: {
+					text: {
+						type: String,
+					},
+				},
+				template: '<p v-n8n-smart-decimal:3="text" />',
+			},
+			{
+				props: {
+					text: '42.12',
+				},
+				global: {
+					directives: {
+						n8nSmartDecimal,
+					},
+				},
+			},
+		);
+		expect(html()).toBe('<p>42.12</p>');
+
+		await rerender({ text: '12.42' });
+
+		expect(html()).toBe('<p>12.42</p>');
+	});
 });
diff --git a/packages/frontend/@n8n/design-system/src/directives/n8n-smart-decimal.ts b/packages/frontend/@n8n/design-system/src/directives/n8n-smart-decimal.ts
index 13f4e72b89..93d33de77a 100644
--- a/packages/frontend/@n8n/design-system/src/directives/n8n-smart-decimal.ts
+++ b/packages/frontend/@n8n/design-system/src/directives/n8n-smart-decimal.ts
@@ -8,12 +8,12 @@ import type { DirectiveBinding, FunctionDirective } from 'vue';
  * In your Vue template, use the directive `v-n8n-smart-decimal` passing the number and optionally the decimal places.
  *
  * Example:
- * <p v-n8n-smart-decimal>42.567</p>
+ * <p v-n8n-smart-decimal="42.567" />
  *
  * Compiles to: <p>42.57</p>
  *
  * Example with specified decimal places:
- * <p v-n8n-smart-decimal:4>42.56789</p>
+ * <p v-n8n-smart-decimal:4="42.56789" />
  *
  * Compiles to: <p>42.5679</p>
  *
@@ -28,7 +28,7 @@ export const n8nSmartDecimal: FunctionDirective = (
 	el: HTMLElement,
 	binding: DirectiveBinding<number | undefined>,
 ) => {
-	const value = parseFloat(el.textContent ?? '');
+	const value = parseFloat(binding.value?.toString() ?? '');
 	if (!isNaN(value)) {
 		const decimals = isNaN(Number(binding.arg)) ? undefined : Number(binding.arg);
 		const formattedValue = smartDecimal(value, decimals);
diff --git a/packages/frontend/@n8n/design-system/src/directives/n8n-truncate.test.ts b/packages/frontend/@n8n/design-system/src/directives/n8n-truncate.test.ts
index 309cab4563..5377d2ee07 100644
--- a/packages/frontend/@n8n/design-system/src/directives/n8n-truncate.test.ts
+++ b/packages/frontend/@n8n/design-system/src/directives/n8n-truncate.test.ts
@@ -11,7 +11,7 @@ describe('Directive n8n-truncate', () => {
 						type: String,
 					},
 				},
-				template: '<div v-n8n-truncate>{{text}}</div>',
+				template: '<div v-n8n-truncate="text" />',
 			},
 			{
 				props: {
@@ -35,7 +35,7 @@ describe('Directive n8n-truncate', () => {
 						type: String,
 					},
 				},
-				template: '<div v-n8n-truncate:ab>{{text}}</div>',
+				template: '<div v-n8n-truncate:ab="text" />',
 			},
 			{
 				props: {
@@ -59,7 +59,7 @@ describe('Directive n8n-truncate', () => {
 						type: String,
 					},
 				},
-				template: '<div v-n8n-truncate:25>{{text}}</div>',
+				template: '<div v-n8n-truncate:25="text" />',
 			},
 			{
 				props: {
@@ -74,4 +74,32 @@ describe('Directive n8n-truncate', () => {
 		);
 		expect(html()).toBe('<div>This is a very long text ...</div>');
 	});
+
+	it('rendered html should update when the value changes', async () => {
+		const { html, rerender } = render(
+			{
+				props: {
+					text: {
+						type: String,
+					},
+				},
+				template: '<div v-n8n-truncate:25="text" />',
+			},
+			{
+				props: {
+					text: 'This is a very long text that should be truncated',
+				},
+				global: {
+					directives: {
+						n8nTruncate,
+					},
+				},
+			},
+		);
+		expect(html()).toBe('<div>This is a very long text ...</div>');
+
+		await rerender({ text: 'new text to truncate that should be truncated' });
+
+		expect(html()).toBe('<div>new text to truncate that...</div>');
+	});
 });
diff --git a/packages/frontend/@n8n/design-system/src/directives/n8n-truncate.ts b/packages/frontend/@n8n/design-system/src/directives/n8n-truncate.ts
index b4b932aaec..0cd20f84f5 100644
--- a/packages/frontend/@n8n/design-system/src/directives/n8n-truncate.ts
+++ b/packages/frontend/@n8n/design-system/src/directives/n8n-truncate.ts
@@ -1,5 +1,5 @@
 import { truncate } from '@n8n/utils/string/truncate';
-import type { DirectiveBinding, ObjectDirective } from 'vue';
+import type { DirectiveBinding, FunctionDirective } from 'vue';
 
 /**
  * Custom directive `n8nTruncate` to truncate text content of an HTML element.
@@ -8,7 +8,7 @@ import type { DirectiveBinding, ObjectDirective } from 'vue';
  * In your Vue template, use the directive `v-n8n-truncate` with an argument to specify the length to truncate to.
  *
  * Example:
- * <p v-n8n-truncate:10>Some long text that will be truncated</p>
+ * <p v-n8n-truncate:10="'Some long text that will be truncated'" />
  *
  * This will truncate the text content of the paragraph to 10 characters.
  *
@@ -16,11 +16,11 @@ import type { DirectiveBinding, ObjectDirective } from 'vue';
  * https://vuejs.org/guide/reusability/custom-directives#usage-on-components
  */
 
-export const n8nTruncate: ObjectDirective = {
-	mounted(el: HTMLElement, binding: DirectiveBinding) {
-		el.textContent = truncate(el.textContent ?? '', Number(binding.arg) || undefined);
-	},
-	updated(el: HTMLElement, binding: DirectiveBinding) {
-		el.textContent = truncate(el.textContent ?? '', Number(binding.arg) || undefined);
-	},
+export const n8nTruncate: FunctionDirective<HTMLElement, string> = (
+	el: HTMLElement,
+	binding: DirectiveBinding<string>,
+) => {
+	if (binding.value !== binding.oldValue) {
+		el.textContent = truncate(binding.value ?? '', Number(binding.arg) || undefined);
+	}
 };
diff --git a/packages/frontend/editor-ui/src/components/Projects/ProjectCardBadge.vue b/packages/frontend/editor-ui/src/components/Projects/ProjectCardBadge.vue
index c640297ca7..48e4cbb1e6 100644
--- a/packages/frontend/editor-ui/src/components/Projects/ProjectCardBadge.vue
+++ b/packages/frontend/editor-ui/src/components/Projects/ProjectCardBadge.vue
@@ -161,9 +161,9 @@ const projectLocation = computed(() => {
 			>
 				<ProjectIcon :icon="badgeIcon" :border-less="true" size="mini" />
 				<router-link v-if="projectLocation" :to="projectLocation">
-					<span v-n8n-truncate:20>{{ badgeText }}</span>
+					<span v-n8n-truncate:20="badgeText" />
 				</router-link>
-				<span v-else v-n8n-truncate:20>{{ badgeText }}</span>
+				<span v-else v-n8n-truncate:20="badgeText" />
 			</N8nBadge>
 			<template #content>
 				{{ badgeTooltip }}