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SEED multi-chain peg and rewards

SEED multi-chain peg and rewards update
  • As of May 1, 2019 Sesameseed has been earning more rewards daily from node operation than SEED rewards distributed. The surplus amount of rewards is used to increase the pegged value of SEED.
  • More participation (e.g.: voting, staking) for Sesameseed across all blockchains means more rewards are earned, increasing the pegged value at an accelerated rate.
  • The reduction in daily SEED rewards to participants is offset by the constantly-increasing value of all SEED as the pegged value rises on all the represented blockchains.
  • Using conservative estimates, someone participating with 100K TRX will earn an average of 45 TRX equivalent a week. By the 12th week, they will be earning more TRX equivalent per week than with the old model. These results can vary depending on total participation (votes, staking) for Sesameseed.
  • To remain transparent on SEED pegging and reward distribution and provide overall health of SEED tokenomics, Sesameseed will publish a quarterly transparency report.


Pegged value equals the sum of all node rewards divided by circulating supply of SEED

When Sesameseed earns more rewards than the amount of SEED tokens it distributes, the surplus amount of rewards increases the pegged value.

Every day 100K SEED is issued, while 25K TRX is utilized to increase the pegged value. It is important to note this chart is for illustration purposes and does not reflect actual values.
Flattening curves comparing the difference in the rate the pegged value of SEED:TRX increases when total rewards earned are 125K (black line) or at 150K TRX (red line). The pegged value increases much more rapidly when node rewards are increased.

Reduction in SEED distributed as Daily Rewards

When factoring in the pegged value of each blockchain, the value of each SEED token will be that much more. The black line represents the rising pegged value of SEED to TRX. When you calculate the amount of Ontology tokens backing each SEED into a TRX value, then that value of each SEED token increases at a faster rate.
Despite the reduction in daily rewards, the increasing peg value on TRON and Ontology means each SEED is more valuable. By the 12th week (highlighted section), the TRX value of daily SEED rewards starts to exceed the value when the pegged value was 1:1.

Transparency and accountability



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