🪙Tokens and Utility

Sedona has two tokens - the liquid staking token sdETH and the protocol token SEDONA.

When a user deposits ETH into the deposit pool, they receive a synthetic derivative token called sdETH.

sdETH represents a staker’s deposit plus the rewards it gains over time. This token is considered liquid and can be used like ETH whereby users can:

• Hold it to accrue staking rewards

• Sell it, or

• Use it to earn additional yield.

If there is floating ETH in the deposit pool, users will be able to exchange sdETH back for ETH (which burns the sdETH, and draws ETH from the deposit pool). Alternatively, they will have the option to exchange it for any token they would like on exchanges that list the token.

SEDONA

SEDONA is an ERC20 token and serves as the protocol token for Sedona. The SEDONA tokens allow Node Operators to launch minipools i.e. full Ethereum Validator nodes matched with liquid staking funds for 1000 ETH.

Node Operators have to stake a minimum amount of SEDONA tokens to secure their assigned staking funds as insurance for good behavior. At genesis the minimum will be 10% of their ETH staked amount, but the operator can choose to stake as much as 150%. The higher their SEDONA stake, the higher their monthly SEDONA rewards will be. Node Operators can use these SEDONA rewards to launch new validator nodes, increasing their overall yield. In the future, Node Operators may restake their monthly SEDONA rewards to request ETH delegation from liquid stakers onto existing minipools.

If a node operator has excessively low uptime and causes a loss of rewards for the protocol, stakers can be compensated from the SEDONA insurance put up by the Node Operator. This socializes the risk of being matched with a bad operator, and minimizes any potential losses. Slashed SEDONA can be sold to token holders at a discounted rate, with ETH proceeds awarded to Liquid Stakers.

SEDONA token holders will have the ability to participate in the Sedona Protocol DAO, which allows members to propose and vote on a range of governance issues including inflation schedule of SEDONA, removing/replacing bad actors, smart contract upgrades, payment of community developers for future work, and rewarding outstanding members of the community (as well as other configuring the settings of the protocol).

SUPPLY BREAKDOWN & VESTING

Total Supply: 100,000,000 SEDONA

• Sedona Foundation: 41.42% | The below allocations are subject to change according to DAO voting. Snapshot voting will be used to gauge sentiment, with recommendations executed by the Foundation.

  • DAO Fund: 16.42% | allocated as per the DAO — eg. growth capital, additional grants, liquidity incentives, airdrop schemes, strategic alliances, advisors, etc.

  • Ecosystem Development Grants: 15% | To fund engineering, business development, and marketing.

  • Liquidity Incentives: 10% | To be deployed as the DAO sees fit.

• Original Team: 20%

• Seed Round: 16.58%

• SEDONA Staking Rewards: 15%***

• Advisors: 6%

• Liquidity: 1%

***SEDONA Staking Rewards are split between 3 parties, and unlocked when issued:

• 70% to node operators

• 10% to Oracle DAO

• 20% to Protocol DAO Treasury

Vesting Following TGE:

• Sedona Foundation: Locked for 3 months, to be deployed under DAO snapshot voting over the following 48 months.

• Original Team: 12-month lock up, 36-month with quarterly vesting.

• Seed Round: 12-month lock, 36-month with quarterly vesting.

• SEDONA Staking Rewards: 48 months, monthly vesting.

• Advisors: 12-month lock, 36-month with quarterly vesting.

• Partner Sale:

  • Tickets under 100k USD: minimum 12-month lock with 12-month quarterly vesting.

  • Tickets over 100k USD: 12-month lock, 36 month quarterly vesting.

• Liquidity: Fully unlocked at TGE.

Note: The only day 1 circulating tokens, excluding liquidity.