Rewards System Overview

Design Principles

Sela Network’s rewards system is designed to ensure sustainable network growth and equitable value distribution among participants in a decentralized infrastructure.

Core Principles

Contribution-Proportional Rewards

Rewards are distributed in proportion to network contribution. Node operators receive differentiated compensation based on request volume processed, performance tier, and uptime. Developers earn revenue based on ecosystem tool usage and quality.

Long-Term Participation Incentives

Vesting mechanisms are applied to encourage long-term contribution over short-term speculation. Staking requirements and performance-based reward structures ensure stable network operation.

Transparency

All reward distributions are recorded on-chain and verifiable by anyone. Smart contracts execute automatically according to predefined rules, implementing a trustless reward system.

Sustainability

The system maintains a virtuous cycle where the reward pool expands naturally as network usage increases. Token burn mechanisms and treasury management ensure long-term economic stability.

Participant Roles and Rewards

Node Operators

Node operators provide web access infrastructure to AI agents by operating distributed browser nodes within the network.

Reward Components:

Base network rewards: Distributed per epoch proportional to staking ratio
API request processing fees: Direct compensation for processed requests (70% of fees)
Performance incentives: Bonuses based on response time, uptime, and success rate (up to +30%)
Staking rewards: Base yield on tokens provided as network security collateral

Tier Structure:

Node operators are classified into tiers based on staking amount: Bronze (100 SELA), Silver (500 SELA), Gold (2,000 SELA), Platinum (10,000 SELA), and Diamond (50,000 SELA). Higher tiers receive priority task assignment, governance participation rights, and dedicated support.

Developers

Developers extend network functionality by creating ecosystem tools, parsers, scripts, and SDKs.

Reward Components:

Marketplace sales revenue: 70% of parser and script sales proceeds
Grant program: Funding for projects contributing to ecosystem development
Bug bounty: Rewards for security vulnerability discovery and reporting
Open-source contribution rewards: Incentives for core protocol improvement contributions

Marketplace Revenue Distribution:

Parser sale price: Developer-determined
  ├─ 70% → Developer
  ├─ 20% → Protocol treasury
  └─ 10% → Token burn

Users

Individual and enterprise users who utilize the platform and participate in the community.

Incentive Structure:

Points system: Earn Sela Points proportional to API usage
Early adopter bonus: Additional points and token rewards for initial users
Referral program: Rewards for both referrer and referee upon new user acquisition
Governance participation: Token holders participate in network policy decisions through voting

Points-to-Token Conversion:

Sela Points is an off-chain point system convertible to $SELA tokens upon meeting certain conditions. Points can be used for API discounts, premium feature access, and other purposes.

Token Economics

$SELA Token Functions

$SELA is the native utility token of Sela Network, serving the following functions:

Network Fees

AI agents pay fees in $SELA when calling APIs or requesting zk-TLS proofs. Fees are dynamically adjusted based on network congestion, request complexity, and region.

Staking Collateral

Node operators must stake a minimum of 100 SELA to acquire network participation eligibility. Staking acts as security collateral and is subject to slashing (partial or full forfeiture) for malicious behavior.

Governance

$SELA holders possess voting rights on network policies, protocol upgrades, and treasury expenditures. Voting power is proportional to holdings and staking duration.

Marketplace Payments

Parsers, scripts, and datasets created by developers are purchased with $SELA. The marketplace is a core mechanism for network ecosystem expansion.

Reward Distribution Mechanisms

Automated Distribution

Smart Contract-Based Execution

All rewards are distributed automatically through blockchain smart contracts. Execution is fair according to predefined rules without human intervention, with all transactions transparently recorded on-chain.

Distribution Cycles

Reward Type	Distribution Cycle	Method	Description
API fees	Real-time	Automatic	Paid to node operators immediately upon processing
Base network rewards	Per epoch	Automatic	Periodic distribution proportional to staking ratio
Performance bonuses	Weekly	Automatic	Bonuses paid by tier after performance metric aggregation
Grant program	Upon milestone	Manual	Approval and payment after project progress review

Fee Structure

API Usage Fees

Per-request cost varies dynamically based on network demand, request complexity, and node region. Expected range is 0.001~0.1 SELA.

Fee Distribution:

User-paid fee: 100%
  ├─ 70% → Request processing node operator
  ├─ 20% → Protocol treasury (development, operations, grant program)
  └─ 10% → Burn (deflationary mechanism)

Variable Factors:

Network congestion: Fees increase with rising demand
Request complexity: Additional fees for VLM analysis and zk-TLS proof generation
Node region: Fees increase in regions with rising node demand

Slashing

Purpose and Principles

Slashing is an economic penalty mechanism in Proof of Stake networks designed to prevent malicious or negligent behavior. Staked tokens serve as collateral to ensure honest node operator conduct.

Violation Types and Penalties

Severe Violations (Immediate Full Forfeiture):

Data manipulation: Providing false data in API responses
Fraudulent proof generation: Forgery or manipulation of zk-TLS proofs
Network attacks: Participation in DDoS, Sybil attacks, etc.
Double signing: Simultaneous execution of identical validator keys on multiple nodes

Minor Violations (Warnings and Progressive Penalties):

Violation Type	1st Violation	2nd Violation	3rd Violation
Low performance (< 80%)	Warning	10% reward reduction	30% reward reduction
Downtime (< 95%)	Warning	Warning	20% reward reduction
SLA violation	Warning	5% reward reduction	Temporary suspension

Penalty Structure:

Slashing consists of three stages: immediate penalty, exit waiting period, and correlation penalty (penalties increase when multiple nodes simultaneously violate). Slashed nodes cannot rejoin the network and require new validator keys and staking.

Ecosystem Fund

Treasury Management

Revenue Sources:

Protocol fees: 20% of API fees
Marketplace fees: 20% of parser sales revenue
Partnership revenue: Corporate partnerships and licensing agreements

Expenditure Allocation:

Total treasury income: 100%
  ├─ 40% → Grant program (ecosystem development support)
  ├─ 30% → Marketing and growth (user acquisition, partnerships)
  ├─ 20% → R&D (protocol improvement, new technology research)
  └─ 10% → Emergency reserves (network crisis response)

Governance:

Treasury expenditures are determined through $SELA token holder voting. All proposals are published on-chain, with voting results and expenditure details transparently recorded.

Points Program

Sela Points

Concept:

Sela Points is an off-chain point system earned through API usage, community participation, and network contributions. Points are convertible to $SELA tokens upon meeting certain conditions.

Earning Methods:

API usage: Points accrual per request
Early adopter bonus: Multiplier bonuses for initial users
Referral: Points awarded to both referrer and referee
Community contribution: Bug reports, documentation contributions, educational content creation

Utilization Methods:

$SELA token exchange: Conversion to tokens upon point accumulation
API discounts: Fee discounts when using points
Premium features: Access to advanced analysis tools and priority support
Marketplace purchases: Point usage for parser and script purchases

Points System Details →

Getting Started

Node Operator Participation

Requirements:

Minimum 100 SELA staking (varies by tier)
Recommended hardware: Dual-core CPU, 8GB RAM, 128GB SSD, 10 Mbps network
Browser extension or standalone node software installation

Startup Procedure:

Create Sela Network account and complete KYC
Connect wallet and deposit minimum staking amount
Install and configure node software
Begin network participation and request processing

Developer Participation

Requirements:

Developer account creation
SDK and API documentation familiarity
Parser or script development capability

Startup Procedure:

Create account on developer portal
Download SDK and configure local development environment
Develop and test parser or script
Register on marketplace and begin sales

User Participation

Requirements:

Email or social account
API usage purpose and expected usage volume

Startup Procedure:

Sign up on Sela Network website
Issue API key
Begin API calls and point accrual
Exchange points for tokens or utilize discount benefits

Reward Calculation Examples

Node Operator Revenue Projection

Silver Node (S-tier Performance):

Staking: 500 SELA
Monthly requests processed: 5,000
Average fee per request: 0.02 SELA
Performance tier: S (98% uptime, excellent response time)

Monthly projected revenue:
  Base network rewards: 50 SELA
  API fees: 5,000 × 0.02 × 0.7 = 70 SELA
  Performance bonus: 50 × 0.30 = 15 SELA
  Total revenue: 135 SELA

Operating costs:
  Electricity: $5/month (home PC)
  Internet: $0 (existing internet usage)
  Total cost: $5/month

Net revenue: 135 SELA - $5 equivalent
Monthly yield: 27% (assuming stable token price)

Developer Revenue Projection

Popular Parser Creator:

Parser price: 30 SELA
Monthly sales: 15 units
Developer revenue ratio: 70%

Monthly revenue:
  Sales revenue: 15 × 30 × 0.7 = 315 SELA

Additional revenue (optional):
  Grant program: 500 SELA (one-time)
  Bug bounty: 100 SELA (upon vulnerability discovery)

Total revenue: 315 SELA (recurring) + 600 SELA (non-recurring)

Disclaimer:

All figures are examples and do not guarantee actual returns. Actual rewards vary based on network usage, token market price, competing node count, performance tier, and other factors. Cryptocurrency investment is high-risk with possibility of principal loss.

FAQ

Q: When are rewards received?

A: Varies by reward type. API fees accumulate in real-time and are automatically paid upon reaching threshold. Base network rewards are distributed per epoch, and performance bonuses are distributed weekly.

Q: What is the minimum staking amount?

A: Bronze Node requires 100 SELA, Silver Node 500 SELA, Gold Node 2,000 SELA, Platinum Node 10,000 SELA, and Diamond Node 50,000 SELA.

Q: Can revenue be predicted?

A: Network usage and token price fluctuate based on market demand, making accurate prediction difficult. Past returns do not guarantee future returns.

Q: What is the slashing risk level?

A: Slashing risk is very low when operating nodes honestly and adhering to recommended specifications. Most slashing results from intentional malicious behavior or critical errors such as running identical validator keys on multiple nodes.

Q: How are taxes handled?

A: Tax treatment of cryptocurrency rewards varies by country. Verify local tax laws and consult tax professionals as needed. Sela Network does not provide tax advice.

Disclaimer:

All figures and examples in this document are for illustrative purposes and do not guarantee actual rewards. Cryptocurrency investment is high-risk with possibility of principal loss. Conduct thorough research and risk assessment before investing.