Incentivization

Session Token enables the incentivization layer for the Session Network, with registered and active Session Nodes sharing a portion of rewards released from the Staking Reward Pool. Due to the nature of the Staking Reward Pool, incentivization of the network is dynamic. As the amount of tokens in the Staking Reward Pool increases, so too does the amount of Session Token rewards (and vice versa).

Session Token rewards incentivize both additional operators/contributors participating in the network as well as promoting good behavior of existing nodes.

As the Session Network is self-governing, bad behavior (such as failing to route traffic or store a message) results in lost rewards for the bad node. As all nodes require a time-locked collateral to participate in the network (see Staking and Collateralization), bad nodes also risk destabilizing a network they are vested in.