> For the complete documentation index, see [llms.txt](https://docs.seda.xyz/home/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.seda.xyz/home/archvie/seda-overview/seda-token-primer/network-participation-and-chain-security.md).

# Network Participation & Chain Security

<figure><img src="/files/ONca57NdwoMy3dJLDReA" alt=""><figcaption></figcaption></figure>

#### SEDA Tokens Utility For Main Chain Validation

SEDA Tokens serve a functional role in securing and maintaining the integrity of the SEDA Network. Token holders may support network security by participating in validation, either by running their own validator node or delegating their tokens to a professional node operator. Within the network, the proof-of-stake (PoS) mechanism is designed to promote active participation and honest behaviour to support network security and integrity. Network participants contribute to network stability and may receive incentives through mechanisms such as fee allocations and staking rewards based on network parameters.

#### Security Measures

The SEDA Chain and Overlay Network implement security measures consistent with leading layer one networks. These security mechanisms are facilitated through game theory, cryptography, strong backstops, and high configurability and computability.

#### Token Creation Via Cosmos SDK Network Inflation Parameters

Network inflation is a parameter inherent in the Cosmos SDK to develop the SEDA Chain. During the development phase of SEDA, the network inflation rate will be set to zero. Network inflation rates can be activated through a governance proposal before the launch of mainnet v1.0.

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