Tokenomics: Introducing Sesame Coin (SSC)
Tokenomics of Sesame Blockchain Network
Token Model
It is crucial to provide tokens to participants in network governance and the network as incentives to establish a proper token economy system. This will ensure the blockchain network can be continuously operated. Inflation of tokens can diminish their value and discourage members from contributing, which is vital for the network’s ecosystem.
We have introduced two token types:
- Sesame Coin(SSC) for network governance, service fees, and staking incentives
- Sesame Vote Token(SVT) as a reward incentive for block validators.
This will not only prevent coin inflation but also establish a robust and sustainable token economy system.
Sesame Coin & Sesame Vote Token
The Sesame Network is made up of two token currencies: Sesame Coin, which serves as the actual currency, and Sesame Vote Token, which manages the fees paid for network usage. Sesame Coin is issued on ERC-20 network with a fixed quantity of 100 billion, which is swapped 1:1 with the main network coins after the launch of the main network. The total tokens will decrease through burning or distribution to members. The network operates with a DPoS consensus algorithm, limiting the number of validators for efficiency. Members who stake SSC can delegate their rights to validators for block verification incentives. The limited quantity of Sesame Coin is used as a network fee and will be burned or distributed through voting. Sesame Vote Token grants voting rights for burning or distributing SSC and is given as an incentive to validators during block verification. In the early stage, less SSC is collected as network fees, so a specific amount is regularly issued to the Sesame Distribution/Burn Pool for burning or distribution voting. As the network becomes more active, sufficient SSC will accumulate, and the amount of SVT given as an incentive will gradually decrease.
Token Utility
To create a strong Sesame Network and establish a thriving ecosystem, the roles of validators, staking participants, and network users are crucial. To keep them engaged, we’ve introduced a new reward system to incentivize their participation. Providers of devices and services using our SDK will benefit from the growing demand for their offerings, and these benefits will be passed on to users. To encourage users, we offer a “quest smart contract” that rewards them for using these devices and services. The incentives come in the form of various gaming-style events and quests. For example, new users who register a digital key with our SDK will receive 5 SSCs, and users who use a digital key NFT more than once a day will receive 1 SSC. If a user achieves a difficulty level of 100 times with a digital key, they will receive an upgrade and an increased staking interest rate. These incentives are drawn from the profits generated by SSCs staked in the marketing pool. Our goal is to keep users interested in the network by continuously returning a portion of network usage fees to them as profits.
Token Distribution
The Sesame Coin, originally issued as an ERC-20 token, will be swapped to a mainnet token with a set exchange rate upon mainnet launch.
15% of the total SSC will be used for marketing, specifically distributed to community builders who boost the ecosystem. 25% will go to investors through private and public sales to secure the necessary funding. 20% will be awarded to verifying nodes that support the project’s vision through staking, storage, and computing. In the early stages of the project, small network usage and limited SDK may not provide enough incentives for the pool, so this allocation will provide necessary incentives for verification and staking members. 5% will be given as incentives to companies that early join the ecosystem and assist in service development and device creation using Sesame SDK. 25% will be given to Sesame Lab, and its contributors for project growth, and the remaining 10% will be decided through SSC owner voting and either distributed or burned.
