Sesameseed Blog
Published in

Sesameseed Blog

SEED Minting and Distribution System

SEED Minting and Distribution System

Key Points

  • Sesameseed is providing transparency to the community on the SEED Minting and Distribution System, including an accompanying SEED Minting and Distribution Worksheet as a resource. (download)
  • Sesameseed splits the node rewards on each blockchain. The split can range as high as 100% of node rewards reserved for SEED minting and distribution to the community.
  • Every day, the relationship between node rewards earned, and amount of SEED distributed, favors an increase in the total redeem value of SEED.
  • A minimum of 10% of the daily eligible node rewards on all chains is used to increase the total redeem value of all SEED in existence.
  • The redeem value increases at a faster rate as Sesameseed earns more node rewards from increased community staking or additional SEED nodes
  • The distribution process is designed to allow Sesameseed to scale the SEED rewards economy to many blockchains in an efficient manner.

SEED is a rewards token which is redeemable for a diverse collection of tokens earned from Sesameseed’s nodes rewards on different blockchains. SEED can be redeemed at any time using Sprout, Sesameseed’s staking wallet.

Sesameseed distributes SEED daily on multiple blockchains. One of Sesameseed’s guiding principles is striving to increase the total redeem value of SEED over time, thus providing better rewards to the community.

The benefits of earning and holding SEED

The SEED Minting and Distribution System is Designed to Scale for Many Blockchains

In mid-2019, SEED became a multi-chain rewards token. As announced at that time, the SEED Minting and Distribution System changed to include the flexibility needed to successfully add more blockchains to the SEED rewards economy.

Various blockchains have differing node rewards structures, and those reward structures can change as the blockchains evolve. The SEED Minting and Distribution System is designed to be flexible enough to adapt to these differing node rewards structures, or adapt as existing structures change. Sesameseed aims to create custom rewards structures to preserve the ability to provide competitive rewards on new and existing represented blockchains, while favoring growth in the redeem value of all SEED over time. Sesameseed is now making the process more transparent with the community.

Sesameseed’s current plan is to expand the SEED rewards economy to include more than 40 blockchains. As Sesameseed continues to innovate, The SEED Minting and Distribution System, as well as Sesameseed’s expansion plan may accelerate, grow or adapt as opportunities that will benefit SEED holders are discovered.

Five Steps for Minting and Distributing SEED

While there are many calculations that must be done in order to get the exact SEED distribution for any given day, the process can be broken down into 5 basic steps. The full calculations can be evaluated in-depth using the SEED Minting and Distribution Worksheet. (download worksheet)

1. Native Token Split (Line 1.1.6 in worksheet)

Rewards from SEED nodes on each chain are split into two portions — one for Sesameseed Operating Expenses (also known as Opex, which is not to be included in the minting process), and the other portion to be included in the SEED minting process (known as the minting portion). Only the SEED minting portion of node rewards is utilized in the distribution process outlined below to determine the number of SEED to be minted each day.

The Native Token Split is completely customizable in how it is applied to each blockchain. As examples, it could be a percentage (0% to 100%) of the total node rewards. Alternatively, Sesameseed could limit the Opex portion to a specific number of tokens rather than a percentage, with everything above that amount used for minting SEED.

One reason for having this split is that it could be utilized to reduce Sesameseed’s share of the SEED tokens minted on that blockchain (see Step 4 — Blockchain SEED Split), providing more SEED to community stakers. It could also be used to ensure rewards stay competitive on all blockchains as additional nodes are added.

2. Sesameseed Subsidy (Line 1.2.9 in worksheet)

In this step, Sesameseed can choose to increase rewards to the community by providing funds from Opex to the minting portions of various blockchains.

One use of this step would be to allow Sesameseed to provide a higher promotional reward on specific blockchains, which would encourage more staking on those chains. Increased staking for Sesameseed on any blockchain benefits all SEED holders by increasing the redeem value at a faster rate.

3. SEED Minting (Section 3.4 in worksheet)

On most blockchains, there are no pre-minted SEED.

Each day, the amount of SEED minted for daily rewards will be determined by the equivalent USD value of the combined minting portion of node rewards from all represented blockchains. The exact formulas for minting and a detailed breakdown of the calculations are provided in the accompanying SEED Minting and Distribution System Worksheet (see below).

The formula for how much SEED is minted daily is:

SEED Minted ≤ ($Node Rewards / $Redeem Value) * 90%

The amount of new SEED minted per day cannot exceed 100,000.

The notations $Node Rewards and $Redeem Value refer respectively to the USD value of the combined minting portions earned by Sesameseed and the USD value of all the native tokens in the redeem value of SEED.

This ensures a minimum of 10% of eligible node rewards each day are used to increase the total redeem value of all SEED in existence. As node rewards rise from more community staking on an increased number of blockchains, this percentage can be even higher.

4. Blockchain SEED Split (Line 1.1.7 in worksheet)

Each blockchain receives a share of the daily minted SEED in proportion to that chain’s contribution to the day’s USD value of total eligible node rewards.

From the amount dedicated to each blockchain, the community receives a percentage of that SEED. This percentage can vary for each blockchain, but can be as high as 100% of the SEED distributed to that particular blockchain being allocated for the community.

5. SEED Distribution (Section 3.5 in worksheet)

SEED distributed to the community on each blockchain is shared by native token stakers and SEED holders on that blockchain, in proportion to their stake and amount of SEED held.

Sesameseed has created a step-by-step SEED Minting and Distribution Worksheet (download) to help those who wish to dig deeper into the process.

The SEED Distribution System Promotes the Total Redeem Value Increasing Over Time

It is important to note that the minting and distribution system is designed with the total redeem value of SEED in mind. The redeem value is defined by the total number of blockchain native tokens for which a SEED can be redeemed. This value is determined for each native token by dividing the total number of those tokens held in Sesameseed redeem accounts by the circulating supply of SEED. As long as enough node rewards from a specific blockchain are added to those redeem accounts to compensate for the increasing circulating supply of SEED as a result of daily minting, the redeem value of that native token will either stay the same or increase.

Focusing on the redeem value of just one particular blockchain, however, would hinder Sesameseed in its goal of providing the best rewards to its community.

So while the number of native tokens in the redeem value for a specific blockchain may rise or fall, that is offset by a change in the redeem value for another blockchain. Every day, the relationship between total node rewards earned from all blockchains and amount of SEED distributed favors an increase in the total redeem value. (The USD value of these rewards is ultimately influenced by external market price fluctuations.)

The SEED Minting and Distribution System will allow Sesameseed to incorporate additional blockchains into the rewards economy in a balanced manner. This customizable system based on daily contribution of node rewards from across all blockchains is scalable, and favors an increase in the total redeem value of SEED over time.

Disclaimer: This article should not be interpreted as investment advice or a guarantee of any return. Sesameseed is an innovator in the blockchain staking space. Blockchain technology, blockchain networks, cryptocurrencies, and other related technologies continue to evolve over time. Sesameseed reserves the right to adapt any policy, business practice, or rewards structure in the future to address changing conditions. Notice of any change of this type will be given to the community by distribution on Sesameseed’s standard communications channels.

Learn more about Sesameseed on our website. Connect with us on Telegram, Twitter, Reddit, Facebook, Instagram, LinkedIn, YouTube, and Medium.

Connect with Sprout on Twitter.

--

--

--

Incentivized community participation on the blockchain made easy. | $SEED $TRX $ONT $ONE | #DPoS #DeFi | Telegram: http://t.me/SesameseedOrg

Recommended from Medium

Web 3.0 and Blockchain

INTRODUCTION Parallel Finance is a Decentralized Money Market Protocol that offers lending…

How Blockchain Technology Is the Future of App Development?

How Blockchain Technology Is the Future of App Development?

TrueUSD ↔ Compound Vulnerability

Algorand is a secure, scalable, and decentralized Blockchain which supports smart contracts.

Eyeska: A Blockchain Built for Speed and Scalability

Is Blockchain the Holy Grail for Global Immigration?

Part 8: Implementing Blockchain and Cryptocurrency with PoW consensus algorithm

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Sesameseed

Sesameseed

This account is operated by Sesameseed to write articles about multichain staking and SEED. Learn more on our blog: medium.com/SesameseedOrg

More from Medium

Mad’s Crypto Corner Partnership with LBank Exchange

MANTRA DAO Weekly Review #37

ZORBIT PUBLIC SALE

UMA on stage at ETHDenver | Key themes focus on rewards as a service, optimism in oracles, and P2E…