SEDA Token Utility
Overview of SEDA’s onchain token economy, where network usage drives deterministic token burn as part of Network processes, linking data requests, supply impact, and Proof-of-Stake security.
Overview
SEDA operates with a complete onchain token economy, where every data request executed on the SEDA Network results in SEDA token burns as part of network processes.
As more builders deploy Oracle Programs, more data requests are executed. As more data requests are executed, more tokens are burned.
SEDA’s Network growth activates SEDA’s token mechanics tied to network usage and security. Builders unlock use cases, attracting more builders and leading to more growth. More growth results in more Oracle Programs, leading to more data requests. More data requests create more burn as a consequence of execution, resulting in reduced token supply and increased network security.
The relationship between ecosystem expansion and token utility, including supply changes resulting from network usage and security, is structural and observable onchain.
Burn, transactions, and Oracle Program deployment metrics are updated daily on the SEDA Trends explorer:
For more information on how to access the SEDA Token:
SEDA Token Utility Functions
Network Security
Network Utilization
Network Participation
Governance
Quick Links
Token Burn Supply: https://explorer.seda.xyz/trends
Circulating and Staked Supply: https://explorer.seda.xyz
Third Party Token Trackers
Tokenomist AI: https://tokenomist.ai/seda-2
Network Security
The SEDA Chain uses a Proof-of-Stake (PoS) consensus mechanism. Validators that participate in block production and batch signing are required to stake SEDA Tokens in order to operate a validator node.
Validators that follow protocol rules receive a portion of the SEDA Chain’s native inflation issuance to incentivize compliant performance. Validators that violate protocol rules may be subject to slashing, which results in the reduction or loss of a portion of their staked tokens. The function of token burns associated with network usage is to enhance SEDA network security by reducing SEDA token supply.
View current staked supply: https://explorer.seda.xyz
Network Utilization
SEDA Tokens are used to enable core network operations by covering native network fees associated with computation, data delivery, and deployment of Oracle Programs and Data Proxies to the SEDA Network. In certain execution paths, tokens are permanently removed from supply as part of protocol-defined processes associated with the usage of the SEDA Network.
View burned supply: https://explorer.seda.xyz/trends View circulating supply: https://explorer.seda.xyz/
Network Participation
Operation of core network infrastructure requires staking SEDA Tokens.
Main chain validators must stake SEDA Token to participate in consensus.
Overlay node operators are required to stake SEDA Token to operate nodes used for querying Data Proxies.
SEDA Token holders may delegate tokens to main chain validators through the native Keplr Dashboard to support network consensus. Through delegation, SEDA Token holders may help to secure the network by delegating their tokens to validators in the active set.
Governance
Validators and delegates may participate in onchain governance by voting on protocol proposals. Governance proposals are conducted through the Keplr governance forums.
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