📔Sedona Mechanics Overview

Overview on how Sedona works

Sedona's core mechanics revolve around the concept of a Minipool. This term was originally coined by RocketPool, which Sedona is based on. A Sedona Minipool represents a validator that was funded via ETH contributed from liquid stakers using the deposit pool and ETH contributed from node operators during their registration with Sedona AI.

To become a validator on Ethereum, the current requirement is 2000 ETH. With Sedona's Minipool design, the upfront cost for node operators drops to 1100 ETH. Learn more about how Minipools work.

The 2000 ETH requirement is met through sourcing 1000 ETH from Sedona's liquid stakers.

To ensure good behavior and collateralize the ETH the node operators are borrowing from the liquid staker's deposit pool, node operators stake at least 100 ETH worth of SEDONA. Because they are staking SEDONA, they also have an opportunity to earn monthly SEDONA rewards. If a validator fails to get rewarded by Ethereum, then the node operator's staked SEDONA gets slashed to make up for the liquid staker's loss of rewards. The protocol operates with two DAOs. The ProtocolDAO, which is tasked with the longterm sustainability of the protocol and is goverened with the SEDONA token. And the OracleDAO which is tasked with handling offchian interactions. Learn more about the two DAOs here (coming soon).