What is SEED?
Community Participation in Blockchain Governance
Sesameseed is a blockchain community created to support its members by providing fair and transparent representation in delegated governance. Sesameseed accomplishes this by maintaining a reputation of upholding its core values of community, transparency and privacy. The SEED token is a representation of the rewards created through the community’s participation in blockchain operation and governance.
Sesameseed considers any blockchain on which it provides resources to the network a represented blockchain. These resources can include representative governance, block production, or node operation. Incentives or rewards provided by these blockchains to gain community participation, such as voting or staking, are typically in the form of each blockchain’s native digital currency. These earned rewards are stored and used to back the pegged value of the SEED token.
SEED — Pegged Token
SEED is a pegged token. The pegged value of SEED is linked to the specific number of coins and tokens Sesameseed has earned for providing community supported resources to blockchains. Sesameseed maintains these rewards on behalf of the community.
The pegged value is a non-negotiable and guaranteed amount of coins or tokens for which SEED can be exchanged. SEED holders may redeem their SEED at any time in exchange for the amount of tokens or coins represented by the pegged value. The SEED tokens that are exchanged will be burned, permanently removing them from the circulating supply. This is non-reversible.
Sesameseed will provide a way for SEED holders to access real-time information on the pegged value of SEED.
How is SEED created
SEED is created by community participation across all blockchains on which Sesameseed operates. Participation, such as voting or staking, provides the rewards that allow the supply of SEED to increase. This process ensures every SEED in circulation is always exchangeable at the pegged rate.
While SEED may be acquired through an exchange, DEX, or other trading options, the only way to obtain SEED directly from Sesameseed is through participating on one of the Sesameseed represented blockchain communities.
SEED automatically participates in voting or staking across all represented blockchains. Each additional SEED earned and held compounds daily through SEED’s automatic participation.
Increased Participation with SEED
SEED held in Sesameseed’s operating expense accounts (OPEX) or SEEDGerminator accounts (including project wallets and the SEEDGerminator Developer Fund) automatically participate. However they do not earn SEED rewards. Earned rewards from Sesameseed OPEX and SEEDGerminator accounts are distributed to SEED holders. This provides higher participation rewards for SEED holders than the rewards which could be earned by participation with the tokens represented in the pegged value.
80:10:10 Reward Model
The 80:10:10 reward distribution model is a representation of the community-first ideology that Sesameseed embraces. Participation rewards are distributed to the community as SEED tokens. Commiting to a community action, such as voting or staking on behalf of Sesameseed, entitles a community member to a proportional share of the 80% participation rewards.
The 80:10:10 distribution principle has remained unchanged since its inception.
- 80% of SEED — Distributed to the Sesameseed community
- 10% of SEED — Distributed to the SEEDGerminator Developer Fund
- 10% of SEED — Reserved for Sesameseed’s Operating Expenses
SEED has utilities beyond being a participation reward token. Some of the current utilities:
- All SEED automatically participates on behalf of Sesameseed on every represented blockchain.
- SEED normally participates at a higher rate than holding the pegged value equivalent on represented chains. This means you earn more rewards for holding SEED than if you exchanged it and participated with those coins or tokens.
- SEED is pegged to coins or tokens from represented blockchains; therefore, SEED has a guaranteed value and can be exchanged for the pegged value(s) at any time.
- SEED is eligible to receive rewards from the SEEDGerminator platform and/or past funded projects. Each project is different in what they offer SEED holders and the requirements for redemption of these rewards.
- Sesameseed has provided additional rewards to community members. Holding SEED is one way Sesameseed identifies members of the community to share those rewards.
SEEDGerminator Contribution Incentives
SEED powers the economy of the crowdfunding platform, SEEDGerminator. SEED holders are often provided special access, better contribution rates, or other benefits when choosing to support a project. In turn, projects often distribute rewards in varying forms back to their contributors.
SEEDGerminator also manages the SEEDGerminator Developer Fund. The SEEDGerminator Developer Fund can provide funds for innovation, projects using blockchain technology, or to drive the adoption of represented blockchains for the benefit of the community and SEED holders. Projects generally offer rewards to SEED holders for supporting the project through the SEEDGerminator platform.
SEED is a Multi-Chain Token
Blockchain participation rewards will be issued from Sesameseed as SEED tokens. All SEED, regardless of the blockchain the token exists on, are equal. All SEED tokens earn equivalent rewards. SEED are pegged to coins or tokens earned on all blockchains.
The number of SEED tokens distributed to voters on each represented blockchain will be balanced to the USD equivalent of the combined rewards contributed by that blockchain. The number of SEED distributed to community members on each represented blockchain will be adjusted to ensure equal participation rewards value is given to each SEED across all represented blockchains.
Example: Participation equal to $1000 with tokens from blockchain A earns the same rewards as participation equal to $1000 with tokens from blockchain B.
As additional represented blockchains are added, the number of SEED tokens earned by an individual voter may go down. However, this will be balanced, and over time greatly exceeded, by the additional rise in the pegged value of SEED. Each new blockchain represented will also mean higher rewards for SEED holders, as those tokens will be participating and earning rewards from new networks. The number of coins or tokens pegged to SEED will not decline with the addition of any new blockchain.
The quantity of SEED issued is set at a fixed daily rate. This amount is divided and distributed in proportion to the USD value of rewards generated by each blockchain. The fixed daily rate will be defined in quarterly reports to SEED holders.
The Economy of SEED
It is the intent of Sesameseed to provide SEED holders with sustainable growth in the pegged value of SEED, growth in the participation rewards earned by SEED, and increased utility for SEED tokens. Sesameseed will accomplish this intent by using the following guiding principles.
- Provide SEED holders a higher level of participation reward over time than could be obtained by using the native coins (at their current pegged value) on each represented blockchain.
- Provide a sustainably increasing pegged value to SEED on each represented blockchain.
- Provide additional utilities to the SEED token beyond the pegged value.
- Incentivize the community to participate in blockchain governance by sustainably increasing the participation power of SEED tokens.
- Providing quarterly written updates to the community measuring the success of the stated goals.
- Maintaining a standard set of guiding principles for SEED on every represented blockchain.
Sesameseed will regularly examine several Key Performance Indicators (KPI) and make adjustments to the SEED economy as needed to maintain these guiding principles. These KPI will be published in a quarterly report available to SEED holders. Based on the KPI, Sesameseed may make adjustments to the SEED economy in order to best maintain the guiding principles.
SEED Token to Incentivize Participation
Driven by its core values of community, transparency and privacy, Sesameseed seeks to empower individuals in representative blockchain governance. Through the SEED token, Sesameseed will continue to incentivize participation on all represented blockchains and provide the maximum reward to the community.