Incentivisation
Session Token is used as the incentivisation layer for Session Nodes, with each registered and active Session Nodes sharing an equal portion of the total network reward.
Due to the nature of the Staking Reward Pool, incentivisation of the network is dynamic. As the amount of tokens in the Staking Reward Pool increases, so too does the incentive for the network.
Session Token rewards incentivise both additional operators participating in the network as well as promoting good behaviour of existing nodes.
As the network is self-governing, bad behaviour (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, bad nodes also risk destabilising a network they are vested in.
Due to the network reward being evenly shared by each node in the network, higher network rewards also incentivise new nodes to join the network, improving the performance and scalability of Session.
Last updated