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Session Token on Arbitrum and the Future of Private Messaging

Published 06 February 2025
Dr. Lorena Nessi
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Session, the decentralized messaging platform known for its privacy-first approach,  entered a new phase with the launch of its $SESH token on May 21, 2025. The rollout coincides with the migration to the new Session Network on Arbitrum mainnet following months of preparation.

The token launched on Arbitrum, an Ethereum Layer-2 network, helping scale Session’s decentralized infrastructure while preserving its core focus: secure and private communication for its 1 million+ users.

Kee Jeffreys, blockchain specialist and co-founder of Session, shared his thoughts with CCN to discuss what this transition means, how users can protect their data, the impact of decentralization on messaging apps, and the ethical challenges surrounding online privacy.

Why Move to Session Network and Introduce the Session Token?

Jeffreys explained that the transition to Session Network and the launch of the Session Token ($SESH) stem from a long-term vision that began with Oxen, a privacy-focused blockchain.

“When we started the Oxen project in 2018, we envisioned a fully enabled privacy stack: private transactions powered by Oxen, a privacy-enabled networking stack supported by a decentralized network called the Service Node network, and private applications built on top of that network, like Session and Lokinet,” he said. Lokinet, a privacy-focused onion routing network, allows users to browse the internet anonymously and access hidden services without exposing their IP addresses.

Over time, user behavior shaped the project’s direction. 

“We found that users engaged far more with the private applications built on top of the network’s infrastructure than the private cryptocurrency,” Jeffreys noted, referring to how people interacted more with Session and Lokinet rather than using Oxen for private transactions.

Managing both a Layer 1 blockchain and private cryptocurrency became increasingly costly. The migration to Arbitrum aimed to  streamline the ecosystem while improving scalability and branding.

“Migrating from Oxen to Session Token on Arbitrum allows Session to unify its branding and focus on the areas of the Session ecosystem that capture the most attention and deliver immediate benefits to millions of users, all while reducing the overhead of maintaining a private cryptocurrency and Layer 1 blockchain,” he explained.

Arbitrum was chosen based on its stability, decentralization roadmap, and high total value locked (TVL).

“It’s a natural fit for Session, providing low fees and deep integration within the Ethereum ecosystem,” Jeffreys said.

How the Session Token Powers the Network

The Session Token is at the core of Session’s decentralized infrastructure. Session nodes stake tokens to route and store encrypted messages, ensuring scalability and sustainability. Jeffreys detailed how the Session Token aligns incentives:

“Session cannot function without Session Token, as it underpins the entire decentralized network that stores and routes every message sent on Session,” he explained.

The system is designed to adjust based on demand.

“If the number of Session users grows and more users purchase premium features, more tokens are burned and subsequently reminted into the Session Rewards Pool, increasing the total rewards available for Session node operators,” he said.

This creates a dynamic scaling mechanism—as demand increases, more nodes join the network, expanding infrastructure. If demand drops, the network contracts accordingly.

Ensuring a Seamless Transition for Users

The network transition was designed to be as smooth as possible for existing users.

Jeffreys emphasized that one of the primary goals of the transition was “to ensure that Session users experience no disruption in messaging during the migration.”

To achieve this, the team implemented two key programs:

  • Service node bonus program: Service node operators earn points automatically, which they convert into Session tokens at the Token Generation Event (TGE).
  • Oxen claims bridge: Users can swap wrapped or native Oxen for Session tokens through a simple interface.

“These tools were being designed to minimize the complexity and stress of migration,” Jeffreys added.

The team conducted multiple test migrations to ensure a smooth rollout.

Key Milestones in the Transition

The transition took place through two hard forks:

  • Anchor hard fork: Prepares the existing Service Node network, linking it to Arbitrum and generating cryptographic keys.
  • Landing hard fork: Finalizes the migration, shifting all Session nodes to Arbitrum’s smart contract system.

Jeffreys confirmed that the entire process, from the announcement of the anchor release binaries to completion, was expected to take approximately four weeks. This timeline ensured node operators had enough time to upgrade before the TGE occurred.

How the Session Token Creates Utility

The Session Token is not just a network asset—it has three primary use cases:

  • Staking and contribution: Node operators stake Session Tokens to run a Session Node, which routes and stores encrypted messages. This process reinforces network security and prevents malicious activity.
  • Rewards: The network distributes Session Tokens to node operators to maintain and secure the infrastructure. Higher rewards encourage more operators to join, expanding decentralization.
  • Burn mechanism for premium features: Users burn Session Tokens to access Session Pro and Session Names. Payments made in fiat or crypto trigger a token burn, ensuring a stable and sustainable token economy.

“For Session Pro and Session Names, users are not required to burn Session Tokens directly. Instead, they can use a third-party payment provider that accepts fiat, Apple Pay, or Google Pay, converts the fiat to Session Tokens, and burns the tokens on their behalf,” Jeffreys explained.

The protocol ensures burns happen, but users are not forced to engage with crypto directly.

“Session Token provides real utility in the Session Network, which I think separates it from being a purely speculative asset,” Jeffreys explained.

Since staking and premium features require Session Tokens, the asset is tied to network functionality rather than hype.

Regulatory Pressures and Session’s Position

Privacy-focused platforms often face scrutiny from governments and regulators. Session remains committed to decentralization, but scalability must not compromise privacy. Jeffreys addressed how Session plans to navigate this landscape.

“None of the teams working on Session wish to see the platform in an adversarial relationship with regulators or governments,” he said.

He also emphasized that Session’s design inherently protects against attacks from malicious actors, hackers, or oppressive regimes.

“Power within the Session Network is decentralized, and the teams working on the project have no special access to users’ messages or data,” he clarified.

This commitment to decentralization will remain as the project expands.

The Future of Session in the Next Three Years

Looking ahead, Session’s success will be measured by user adoption.

“Personally, success to me means Session surpassing Signal’s ~40 million monthly active users within the next 12–24 months and becoming a mainstay in the private messaging market,” Jeffreys shared.

If achieved, this milestone would strengthen the Session Network and Session Token while proving that privacy-first messaging can compete with mainstream platforms.

Jeffreys closed with an invitation for users to join Session’s community.

“I expect the next few months to be very exciting for Session and Session token”. 

If users want to get involved, downloading Session and joining the community is the best place to start. “See you there,” Kee said with a final remark.

According to Session, more than 13 million people have downloaded the app, making it a vital tool for protecting free speech among journalists, activists, and civil society groups who rely on it for secure communication.

Dr. Lorena Nessi

Dr. Lorena Nessi is an award-winning journalist and media technology expert with 15 years of experience in digital culture and communication. Based in Oxfordshire, UK, she combines academic insight with hands-on media practice.

She holds a PhD in Communication, Sociology, and Digital Cultures, and an MA in Globalization, Identity, and Technology.

Lorena has taught at Fairleigh Dickinson University, Nottingham Trent University, and the University of Oxford. She is a former producer for the BBC in London, with additional experience creating television content in Mexico and Japan.

Her research focuses on digital cultures, social media, technology, capitalism, and the societal impact of blockchain innovation.

She has written extensively on digital media and emerging technologies, with her work featured in both academic and media platforms. Her Web3 expertise explores how blockchain technologies shape culture, economics, and decentralized systems.

Outside of work, Lorena enjoys reading science fiction, playing strategic board games, traveling, and chasing adventures that get her heart racing. A perfect day ends with a relaxing spa and a good family meal.

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