The system.properties file (located, for example, c:\niagara\Niagara-3.x.xx\lib) contains values for Sedona Framework system properties, including the sedona.home property.
In AX-3.6, you can change the value for sedona.home property to set a different location for your Sedona Framework installation. Beginning in AX-3.7, the sedona.home property is a fixed location, !sedona/. The Sedona Installer installs Sedona Framework Bundles and environment files only to !sedona/.
In Sedona TXS-1.2, you should NOT change the sedona.home property.
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