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Say hello to Session Token 👋

What is Session Token? What does it do? Everything you need to know is right here.
19 December 2023Chris McCabe

We are creating an entirely new system to support and amplify Session

Something which can be sustainable. 

Something that can unify the project with the community.

Session Token is the cryptocurrency driving the future of Session. It is used for active staking, securing and rewarding the Session Network, and on-chain purchase of premium features in Session. This article will explain Session Token’s utility and tokenomics. 🧑‍🏫

Session Token Utility Image

Section 1: The Heart ❤️

The Staking Reward Pool is the heart of the system — it’s how Session can give back to the network which secures and runs the app. As Session Tokens spent on in-app purchases increases, more Session Tokens are added to the Staking Reward Pool. As the pool grows, so do the rewards for active participants, incentivising network growth and increasing its performance and security — improving Session in the process.

Flywheel Session Token

The Staking Reward Pool will begin with 40,000,000 Session Tokens and will start rewarding active participation in the network immediately. Our goal is to have more tokens going in than out of the pool within 2 years of launch. Read about monetisation to find out how. 👇

Section 2: Monetisation 💼

Session has multiple monetisation features in the works, including Session Pro, a subscription service for power users of Session. 

Subscribing to Session Pro unlocks in-app features which appeal to power users and dedicated fans of Session. Our MVP will include cosmetic features like display badges and customised profiles, while we will look to level-up Session Pro with features like custom sticker packs, increased file sizes, and custom emojis in the future.

Monkey with Session Pro

Depictions are for illustrative purposes only and are not a finished product. 

Competitors in the messaging space have similar models, with Signal bringing in at least USD $10 million a year from small donations which enable in-app badges, Telegram’s successful rollout of Telegram Premium and Fragment, and other apps, like Threema, drawing in revenue from app purchases.

In the case of Session Pro, subscribing and unlocking in-app features requires on-chain use of Session Tokens. An oracle will be used to stabilise the cost of Pro in USD for end-users, and subscriptions can be paid for using any of local currency fiat (via Apple Pay or Google Pay, for example), Session Token, or other cryptocurrencies that become supported. In the end, value from Pro subscriptions (minus fees and operational costs) is all converted to Session Token. 

Those Session Tokens are either added to the Staking Reward Pool or Protocol Owned Liquidity.

90 % Staking reward pool

Session Tokens are added to the pool whenever they are used to make purchases such as Session Pro subscriptions. Out of total monetisation sales (minus operating costs such as App Store fees, conversion fees, file server costs, etc.), 90% of value captured is added to the Staking Reward Pool to reward node operators and stakers for securing the network and running Session.

10 liquidity

The other 10% goes to protocol-owned liquidity. Increasing protocol-owned liquidity is intended to support the underlying network and improve stability on the token side.

Other features, such as Session Namespaces (previously ONS), Session Namespace Marketplace, and Session Enterprise will be a part of the pool in-flow as well.

Section 3: Node Rewards 🎁

Session Nodes are the building block of the Session Network — they’re responsible for securing the network, storing information for Session, and routing Session messages.

  • Stake 15,000 Session Tokens for a full node

  • Rewards Scale based on the size of Staking Reward Pool

  • Active nodes receive rewards directly from the pool for securing the network and running Session

The Staking Reward Pool unlocks 14% of its Session Tokens each year. Here’s a simple formula to calculate the rewards paid to the entire network on a given day:

(Token Reward Pool)*0.151 / 365 = Daily Network Reward

The pool will have 40 million tokens at TGE, so the day 1 reward for the network will be ~16,547 Session Tokens.

Improved intangibles

Building Session Token will usher in a new era of growth and progress that follows the core mission of the project: our decentralised, private, communication network.

Switching over to an EVM-compatible token will open the door for: 

  • New centralised exchange listings

  • Native decentralised exchange listings and support

  • Better, more varied wallet options

Combined with improved liquidity, this can have a powerful amplifying effect on the other improved aspects of our tokenomic system. 

Keep an eye out for more detailed information about our tokenomic model and plans for the future of Session Token — coming soon.

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