Network Utilization

Playing A Crucial Role In Data Request Life-Cycles

Utility of SEDA Tokens by Solvers

Solvers maintain an operational inventory of SEDA Tokens to enable their function in participating in the communication of data requests between requesting networks and the SEDA protocol. When relaying a data request for processing on the SEDA Network, Solvers utilize SEDA Tokens to activate the request-processing workflow.

Determining The Processing Parameters for A Data Request

A Solver submits an estimate to the data requestor based on:

• The data access cost that is set by a data provider

• The cost for computation and gas on the SEDA Network

• The contribution to overlay compute nodes participating in the specific request

• The Solver's service fee

Distribution

The Solver may present the estimate to the data requestor in a currency of its choosing. This could be any currency. Upon acceptance by the data requestor, the Solver relays the data request to the SEDA Network in an equivalent amount of SEDA Tokens, minus the Solver's service fee, into the Prover Contract to trigger request execution.

The SEDA Tokens committed to a request are then distributed among the data request participants (Overlay Compute Nodes and Data Providers), reflecting their role in fulfilling the request.

SEDA Token Burn Mechanism

A portion of SEDA Tokens used for computation and gas costs mayl be burned. This percentage is not fixed and subject to decentralized governance proposals facilitated by SEDA Token holders, to maintain the operational efficiency and technical sustainability of the network.