As Sesameseed expands into new blockchains, the voting rewards will transition to a new model. This model has been designed to create new utilities for SEED, and was developed using a set of guiding principles. Additionally, there are changes to terminology, token issuance, and precision, which are explained below.
To maintain transparency of the operation of Sesameseed, regular updates are planned in addition to quarterly reports.
To support the introduction of new blockchains, Sesameseed will transition to a new model in voting rewards effective May 1st, 2019. Many of the reward details will be explained in this article with additional information being shared in the near future.
As not all blockchains use the same terminology for participating on its network, the term “vote” will be replaced with the term “participate”. Participate should be considered a comprehensive term to describe the actions performed by the community on behalf of Sesameseed, such as voting or staking.
Sesameseed has historically issued SEED daily at a variable rate based on the pegged value of SEED with 1 SEED = 1 TRX earned in node rewards. This model is being revised to incorporate the additional value created by participation rewards across multiple chains.
The number of SEED issued on a daily basis will no longer be linked to the amount of tokens earned through participating. Sesameseed will be issuing and distributing a fixed number of SEED per day. This change will allow the pegged value of all SEED to rise, and provide a method to issue SEED as the participation reward on multiple blockchains.
The quantity of SEED issued and thereby entering circulating supply will initially be set at the rate of 100,000 SEED. The number of SEED distributed to each represented blockchain will be balanced to ensure all SEED tokens earn equivalent rewards. The rewards for participating using the native currency of each blockchain will also be balanced according to the guiding principles for SEED.
The 100,000 SEED daily issuance rate will be periodically reviewed by Sesameseed. This review will measure key performance indicators (KPI) and make adjustments to SEED issuance as needed. Key Performance Indicators on the performance of SEED include, but are not limited to, pegged value, participation power, and circulating supply. These KPI will be published in a quarterly report.
This new reward model is designed to allow for continuous growth in the number of tokens available to the pegged value of SEED. The growth rate in the number of pegged tokens from each blockchain will be based on the amount of rewards generated from the resources Sesameseed provides to that blockchain.
Sesameseed is committed to providing SEED holders a constant increase in the pegged value of SEED in TRX and future coins/tokens. Sesameseed will provide a way for SEED holders to access real-time information on the pegged value of SEED and monitor the rate of increase.
As Sesameseed initiates its transition to issuing 100,000 SEED per day, the importance of fractional SEED distribution becomes evident. When Sesameseed enters new blockchains and 100,000 SEED is divided across a larger community, the importance will be further emphasized.
Sesameseed will issue precision SEED on new blockchains when possible. On the TRON blockchain, a proposal to update existing tokens with precision is being actively addressed by the TRON Foundation. Sesameseed will continue to maintain fractions of SEED for distribution to voters until this parameter is initiated.
Sesameseed is now operating a node on a second blockchain. This blockchain will support an expanded community, earn additional rewards, and support the pegged value of SEED.
In order to ensure as minimal an impact as possible to current Sesameseed voters, SEED will not be issued and distributed on the new blockchain until the pegged value of SEED reaches 1.05 TRX per 1 SEED. Sesameseed estimates it could take up to 8 weeks to begin issuing SEED on the new blockchain, depending on a number of market factors. The name of the new blockchain with details of Sesameseed node and community on the network is scheduled in the coming weeks.
Sesameseed is dedicated to facilitating the process of participating in its community and on the blockchains on which it operates. To this end, tools and technology are currently under development, ensuring a smooth transition and access to SEED utilities across multiple blockchains. More information will be shared as these resources become available.
Read the supporting article to this one using the link below:
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