SEEDGerminator Development Fund Update
How KLV tokens will be used to benefit the community
September 10, 2020
The SEEDGerminator Development Fund and all of the tokens within it have been accumulated from the 10% of Sesameseed node rewards reserved for developer support. The intended purpose of the Development fund is to improve and develop the SEED ecosystem and support represented blockchains. A portion of Sesameseed’s node rewards are dedicated to the SEEDGerminator Development Fund. This fund is an example of Sesameseed’s dedication to prepare for future opportunities to benefit SEED holders or support blockchain development.
As this fund continues to grow, more opportunities become available. During this time SEED holders benefit from the fund deferring daily rewards which are distributed to SEED holders as part of the SEED Bonus Rewards. All tokens held by SEEDGerminator have been contributed by listed projects, or are the result of node rewards earned by the fund. The SEEDGerminator Development Fund has never accepted tokens from the community. The fund benefitted from acquiring TWX during the TronWalletMe listing. TWX has since been converted by that project to KLV.
As the fund matures, the Sesameseed community will have opportunities to support blockchain development through SEEDGerminator. KLV can not be easily used for that purpose. Therefore it is likely at some point in the future KLV will need to be converted into TRX, BTC, or some other kind of currency developers can more easily utilize for their purpose.
Throughout the course of several community discussions regarding the KLV tokens held by SEEDGerminator, the following option was proposed and is being enacted. SEEDGerminator will contribute to the liquidity pool for the KLV uPair on uTrade. Providing liquidity requires funding both the trade token (KLV) and the base token (TRX). SEEDGerminator will convert portions of KLV to TRX to support that liquidity pairing. UP earned by SEEDGerminator will be added to the fund for future use.
Sesameseed taking this action will not only prepare the fund for the future, but it can potentially immediately benefit SEED holders in a significant way.
Providing increased liquidity should encourage more trading volume in that pair. In other words, the amount of volume required to move the price in the trading pair rises in proportion to the depth of liquidity in that pool. Every trade that occurs in that uPair will result in SEED being bought on the open market as a reward for trading. As a result of SEEDGerminator contributing to the liquidity of the KLV uPair, any major fluctuations in the price of KLV should lead to larger purchases of SEED on the market.
As an example, a liquidity pool of $200,000 requires $20,000 in volume to move the price by 1%. This would generate approximately $1000 in SEED bought on the open market for every 1% movement. Since traders are rewarded with that SEED, this raises exposure for Sesameseed as those traders become SEED holders and can watch their trading rebate automatically compound in their wallet. Additional benefits to SEED holders through the success of the Unifi Protocol has been outlined in this article.
Sesameseed remains committed to maximizing the potential of the SEEDGerminator Development Fund to take advantage of future opportunities. Open discussions between Sesameseed and the community is always ongoing, and community recommendations are always considered in Sesameseed’s actions. Honoring Sesameseed’s commitment to transparency, information and updates regarding the SEEDGerminator Development Fund will continue to be distributed to the community through Sesameseed’s normal communications channels.
*The title and subtitle of this article was edited for clarity on Sept 11.
