Decentralised Sequencer Network (DCN)

Lumia L2's Sequencer Network

Lumia L2, as a state-of-the-art Layer 2 solution, recognizes the importance of sequencers in achieving high performance and scalability. To further enhance the capabilities of its network, Lumia L2 has embarked on an ambitious plan to co-develop a dedicated sequencer network.

Subnet of Sequencers

Lumia L2 aims to create its own subnet of sequencers, withing a shared sequencer network (similar to Avalanche setup) which will work together to process transactions and generate batches for the Lumia L2 network. This subnet will consist of multiple sequencer nodes, each contributing to the overall throughput and resilience of the system. The nodes will be carefully selective and made up of our partners, MMs and institutions who have shown interest and support for Lumia.

By having a dedicated subnet of sequencers, Lumia L2 can ensure optimal performance and reliability, as the sequencers will be specifically tailored to the requirements and characteristics of the Lumia L2 network. More importantly it is a crucial milestone in enabling and turning Lumia L2 from its current notion of "Stage 1" roll-up to "Stage 2" roll-up.

Sequencer Rewards

To incentivize participation and maintain a robust sequencer network, Lumia L2 will implement a reward mechanism for sequencers. Sequencers that actively contribute to the network by processing transactions and submitting batches will be eligible to earn LUMIA tokens as rewards.

This reward system serves multiple purposes:

1. Incentivization: By offering LUMIA token rewards, Lumia L2 creates a strong incentive for sequencers to participate in the network and perform their duties diligently. This helps ensure a stable and reliable sequencer infrastructure.

2. Decentralization: The reward mechanism encourages a diverse set of participants to operate sequencer nodes, promoting decentralization and reducing the reliance on a single entity for transaction processing.

3. Ecosystem Growth: As sequencers earn LUMIA tokens, they become stakeholders in the Lumia L2 ecosystem. This alignment of interests fosters long-term commitment and contributes to the overall growth and success of the network.

More news will follow around Q4-2024, as we make progress towards completion and opening up of our subnet of sequencers.