If I were in your shoes, I would quit. Working for people like your boss is not only draining, but it will damage your career/kill your confidence.
The next time he fires up netcontrol2, he'll get the message.
Do you like the work/people? Would you mind being unemployed? Are you irreplacable? Skilled enough to get a job quickly? In a good area for jobs? Do you have to keep the job? Are you assertive? Have you any savings? has he picked up on anything he's seen yet? Is he otherwise a jerk? Is it targeted at you or for everyone?
Have you been timewasting too much? If not then you can bring up your good conduct, express regret that he doesn't trust you much, act like you feel it a slur on your professional character and that micromanaging makes it a more hostile workplace. Reassure him that your conduct will still be good and ask that he remove it.
If so, less wiggle room, maybe have a meeting to clear the air and offer him something else, another way to show improvement that he can verify like a voluntary daily report of tasks progressed or whatever you think of, in exchange for removing it.
Lots of people have to perform their job under constant scrutiny - shop assistants, screen and theatre actors, taxi and bus drivers, receptionists and front of house staff, etc. that suggests it is possible to work like that, so is it worth the trade off of staying?
It might be an indicator of a paranoid boss who won't be fun to work for, but then lots if people work for unpleasant people and survive.
Can you use it as a learning experience to raise your game to meet it as a challenge to meet and exceed his expectations? Is he likely to acknowledge that you are behaving fine and relax his policy? Does this extend to other things at work too?
Do nothing, or do something, but first think what you want to happen in your near future, and second what things you are willing to trade to get there.