Back to collectionNodeFi proposal separates node income from the underlying licence
MetaStreet's proposal introduced a Yield Pass, an ERC20 representing node income, and a Discount Pass, an ERC721 associated with the underlying Sentry Key. The intended structure combined yield trading with fixed-rate, fixed-duration borrowing against an illiquid principal asset. Borrowing was optional rather than a prerequisite for every yield position. The proposal therefore addressed both the pricing of future emissions and access to temporary liquidity, two different sources of financial exposure.
MetaStreet's proposal introduced a Yield Pass, an ERC20 representing node income, and a Discount Pass, an ERC721 associated with the underlying Sentry Key. The intended structure combined yield trading with fixed-rate, fixed-duration borrowing against an illiquid principal asset. Borrowing was optional rather than a prerequisite for every yield position. The proposal therefore addressed both the pricing of future emissions and access to temporary liquidity, two different sources of financial exposure.
The proposed Discount Pass would not be tradable initially. The authors described low loan-to-value borrowing estimated at 5-10%, without an oracle or forced liquidations, and sought permission for their contracts to receive transferable Sentry Keys and esXAI. Node assets would be held in the contract until maturity. These design choices move attention toward repayment terms, contract control, collateral recovery and the reliability of delegated nodes; removing an oracle does not remove credit or execution risk.
The proposal also required outside lending capital and an allocation method for nodes deposited at different times. It described time-weighted yield shares and said the XAI adapter would receive a separate audit. A functioning market would consequently need more than tokenizing the licence: it would need funded borrowing pools, dependable node operation and completed implementation review. The announcement records that proposed architecture, not a live market, granted transfer exemption or independently examined audit result.