SFI Nodes
To create a secure Layer-2 network focused on tokenising AI assets, Singularity Finance will be launching its network of decentralised node operators. These nodes are integral to the functionality of our platform, performing specialised tasks that go beyond traditional validation. Nodes will provide much needed security and decentralisation to the network as they provide an additional layer of oversight thereby maintaining the integrity of the network.
Some of the functions that the nodes will provide include:
Fraud Proofs Generation: Detect and challenge invalid state transitions by generating fraud proof thereby increasing the network's security.
Decentralised Decision-Making: Nodes participate in governance processes enabling decentralised control over network upgrades and policies.
Benefits of running a node:
Staking Rewards: Node operators will earn rewards by staking SFI tokens and running the nodes. These rewards will be distributed based on their contribution to the network, such as uptime, number of transactions processed or the number of tokens staked.
Share of Transaction Fee: As the network matures, the network will see a growth on the number of transactions occurring on the chain. Node operators will also earn part of the transaction fee generated by the network.
Delegated Staking: Users who cannot run their own nodes will be able to delegate to the available node operators. This allows pooling of resources leading to increase in staking power and greater rewards. A portion of the rewards would be distributed back to the delegators
Governance Participation: Node operators and delegators will be able participate in governance decisions based on the token staked or contribution to the network, allowing them to influence the future direction of the network.
Vesting and Unlock
To discourage short-term speculation and ensure overall network stability, early redemption of staked tokens may incur a penalty on the staked amount. Tokens become fully accessible after the completion of the vesting period, allowing operators to realise the full benefits of their participation.
More information on the timelines and mechanism would be released with technical details of the L2 network.
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