Sesameseed Node Operations Model
In April of 2019, Sesameseed released the article SEED — A Multi-chain Token Empowering Blockchain Communities. That included information on Sesameseed guiding intents for the direction of the SEED economy. From that article — “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.” To support this intent, and in keeping with Sesameseed’s value of transparency to the community, Sesameseed announces its Node Operations Model. This Node Operations Model is not a set of absolute rules, instead it provides insight and creates a shared terminology to make communication with the community more clear.
Sesameseed’s success has relied on continued innovation in the ever-changing blockchain space. Sesameseed is dedicated to finding and creating opportunities to raise the pegged value of SEED. Each blockchain that adds rewards to the pegged value of SEED increases the guaranteed redeem value of every SEED on every blockchain, which is a benefit to all SEED holders.
As part of the blockchain evaluation process , Sesameseed is currently operating test nodes on various blockchains. Nodes operated by Sesameseed during an evaluation or test phase will be referred to as test nodes. Test nodes will not provide any type of staking reward and will not contribute to the pegged value of SEED. All blockchain rewards generated by test nodes or test blockchains will be used within Sesameseed’s operations budget to accelerate the evaluation process for adding blockchains to the SEED rewards economy.
Test nodes may be established or eliminated without notice as part of the blockchain evaluation process. Test nodes may or may not be discoverable on a block explorer depending on the specifications of each node and blockchain. Test nodes may be labeled with the Sesameseed name. As each blockchain will be different, there is no specified time limit for a node to remain a test node. Establishing a test node on any blockchain does not guarantee Sesameseed will operate a SEED node on that blockchain in the future.
Selected test nodes may be opened to community staking as part of the testing or evaluation process. These selected test nodes will not distribute staking rewards for community staking.
Nodes or blockchains that become eligible to distribute SEED rewards will be classified as SEED nodes. Sesameseed will announce to the community when a test node becomes a SEED node. The rewards model for each SEED node will be announced prior to distributing SEED rewards from a node. Current examples of SEED nodes would be Sesameseed’s Ontology and TRON nodes.
The goal of SEED nodes will be to reward the community for their participation in voting or staking. As each blockchain’s rewards system is different, not all SEED nodes will operate on the same 80:10:10 reward model used on TRON and Ontology. The 80:10:10 reward model distributed 80% of node rewards to the community, 10% of node rewards to Sesameseed’s Operating Expenses (OPEX), and 10% of node rewards to the SEEDGerminator Fund. Creating a custom rewards model for participation on each blockchain will allow Sesameseed the flexibility to operate a greater number of nodes on a wider variety of blockchains. Each SEED node operated will contribute to the pegged value of all SEED.
The rewards model for a specific SEED node could be variable and may have conditions that change the ratio of rewards they provide. As one possible example, a SEED node might distribute a higher ratio of rewards back to the community as the total amount staked to the node increases past a predetermined threshold. The intent is to provide a competitive staking environment on each blockchain and maximize rewards for those participating with Sesameseed across all represented blockchains.
SEED nodes may also change back to test nodes in the future. Notice will be provided to the community as far in advance as feasible for any such change. Potential reasons for this could include, but are not limited to, unforeseen changes in market conditions, or changes made by a blockchain to their rewards structure.
At the time of this announcement, there are currently no plans to change the 80:10:10 rewards model on TRON or Ontology.
How can the community participate in the test node process?
Sesameseed is aware some members of our community may own tokens on the various evaluated blockchains and desire to assist in the evaluation process by staking. Sesameseed may choose to announce selected test nodes will be opened for limited staking from the community. It will be clear in these announcements that test nodes do not provide any type of reward to stakers. All blockchain rewards generated by test nodes will be used within Sesameseed’s operations budget to accelerate the process of adding blockchains to the SEED rewards economy.
Blockchain evaluations will be ongoing as Sesameseed continues the process of expanding the SEED economy and rewards structure to additional blockchains. Additional suggestions on how the community can get involved can be found in this article on the blockchain evaluation process.