Service nodes are key to Session’s functionality, assisting with both message routing and temporary message storage. Session messages are onion-routed through the service node network, protecting the identity of both the message sender and recipient. If the recipient is offline and cannot receive a message immediately, “swarms” of service nodes are used to provide redundant storage of the encrypted message until the recipient comes online to receive it.
Lokinet, our powerful general-purpose onion router, uses Oxen Service Nodes as routers — encrypted data packets are routed through a series of service nodes, ensuring that no single server ever knows a packet’s sender and recipient. And, of course, Oxen Service Nodes are financially incentivised so you can rely on them.
But this isn't just a one way street: both Session and Lokinet also benefit Oxen. One central avenue for this value capture is the Oxen Foundation Infrastructure Fund (OFIF) — a fund whose sole purpose is to use profits from upcoming monetised Session features to buy and burn $OXEN. The OFIF will empower Session to directly benefit the Oxen ecosystem by creating demand for the coin through mitigating inflation and lowering supply — thus raising the price.
Session has an upcoming Session Pro subscription, as well as several standalone features and upgrades which will be monetised through the OFIF, to the benefit of Oxen. Session Pro will be a subscription for power users of Session which bundles a variety of monetisable features into one package, with some Session Pro features also being available for individual purchase. Some of the features that will drive this monetisation push include Session open group configuration and hosting services, increased attachment file size limits, encrypted account backup storage, and permanent Session username registration. We’re also going to provide monetised client-side features such as custom emojis and sticker sets, multi-account registration, manual region selection for service node pathways, and verified account status. The exact details for how these features will be bundled and priced are to be determined.
Lokinet will also provide value capture for the Oxen ecosystem. Lokinet’s main funnel for monetisation comes from Oxen Name Service (ONS). By default, Lokinet addresses are long pseudorandom alphanumeric strings. ONS allows users to burn $OXEN in order to map a shorter alphanumeric string to their Lokinet address so that their services can be accessed using a memorable, human-readable name. Lokinet addresses will be paid for in $OXEN on a 1-year, 5-year, or 10-year basis, providing a recurring stream of burned $OXEN.
In future, Lokinet may also deploy an exit node marketplace with $OXEN payment options, opening up another avenue for $OXEN transactions and for burning $OXEN through fees.