Let's talk about SEED 'value-acruing' model.

LeoFinance
2 months ago
(edited)
6 Min Read
1246 Words

The SEED token public sale started 2 days ago and the first funds started flowing in.

Almost 2800$/HBD coming in from 15 participants! These numbers may not seem impressive but I'm overall pretty happy with the initial community feedback. After all, we're talking about a centralized token with a big 'trusting' factor, and still with a lot of uncertainties. So big respect for all the token holders trusting me since this early stage.

I hope today's post will help to clarify some of these uncertainties.

With a bit of time, things will be falling into place. For example, maybe you didn't notice, but we already have a logo for SEED:

SEED TOKEN.png

It's... yeah, a seed. And it's going to the moon (like all of us with that HIVE rocket). To Caesar what belongs to Caesar, @queengaga did the job in record time while handling all my rants, so If you like her style/need her design skills let me know (she's not that active on Hive).

Although important, it is not what I wanted to talk about today (feel free to express your thoughts about the logo below).

How SEED will get its value?

We all know that HBD allocated at savings is great, as a 10% APR for holding a ('very-closer-to)' stablecoin it's a good deal. But it's not enough to justify the 'trust' in another individual.

If the entire value proposition of SEED would only rely on this 10 % APR coming from the 'Savings' feature it would be a useless token. You would be much better off holding all the HBD yourself.

For that reason, and as stated in the 'tokenomics introductory post';

@empoderat is setting up a 5000$ bankroll to kickstart the trading fund in the first stages of the project.

And it's this initial 5000$ the key to bootstrap our growth. Let's going to unleash the 'How'.

First the 'boring how':

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2500$ have been allocated into a very well known on LeoFinance; the CUB/BNB pool with a +142% APR.

I'm allocating into this pool instead of the BUSD because 2 reasons:

  • BNB didn't have a proper pump yet since the last lows. While others had a +25% pump CZ coin only had a +10% one.

  • All this FUD around Binance with the regulations. You're feeling comfortable buying it? Me neither, so it will be probably a good buy ;)

Won't talk about CUB because I assume that everyone knows that very interesting things are coming for Cub Finance. Price is 'too low' to dump much more and the APR is very juicy without that much of a risk.

This pool is a very safe option to get a cash flow which is exactly what I need for the 'interesting how'.

Let's talk about the 'Interesting How' and what I believe will be the main value proposition for the SEED token (at least in the short term).

Meet DAO Maker:

daomaker.png

(not to be confused with Maker Dao; the DAI stablecoin protocol).

Maker DAO is (besides a lot of other things; a blockchain launchpad. That means they help other blockchain projects to get started by giving them advisory & operational services in addition to the incubation itself.

Long story short; the projects that they incubate are in most cases top-notch, and there's a very high demand to participate in their SEED & SHO sales.

If you want to learn more about DAO-Maker, check this article.

How does it work?

Basically, people buy up $DAO tokens and lock them up for the chance to participate in their token sales.

In other words, they offer people the chance to be able to buy tokens of projects at SEED/Private sale/Public sale prices. But first, you have to gain the right to participate.

They have a few tranches, being the highest one +10.000 DAO (20.000$ at current prices) for approx a 20-30% chance to win a spot in the token sale.

What's the reward?

If you win the lottery, you win a spot that allows you to allocate 100-1000$ (depends on the project) at presale prices for the token concerned. And what's the ROI? Check:

numbers1.png

And these only are a few examples. Some of the most successful sales did an x100 vs. their token price. And that's true that you have to wait a few months (because usually a big chunk of the tokens are locked for a few months minimum), but the % that you have unlocked (10-20%) it's usually enough to cover your initial investment.

I have a friend (it's not me, for sure) that managed to get a spot into the DinoX sale:

dinox.png

Lottery allowed him to allocate 500$.

  • Received 20.000 tokens valued at 0,025$/u
  • The day the token hits exchanges the token is valued at 0,6$ (an x24 return).
  • He sells all their unlocked stash (20%) so 4000 tokens for 2400$ (almost x5 his initial investment).
  • He still has 16000 tokens (valued at 9600$) which will be unlocked progressively in 16 months approx.

Judge yourself. Of course, people are killing for a spot in this kind of sales.

If you were wondering, you were right.

I took profit from last week's prices and managed to get a big chunk of DAO's at a big discount vs. ATH prices.

I have been following the project for a while and I think they're doing great things (basically putting Venture Capital Investment into the hands of 'non-accredited' investors).

prefunding.png

The remaining 2500$ from the 'Trading fund' will be allocated to the upcoming lotteries to be able to participate in the next SEED & SHO's offerings.

SEED holders will benefit from the results of these token sales. What I'm basically doing is granting every SEED holder the opportunity to participate in presales without the need to put a big amount of capital upfront.

How these sales will benefit SEED holders exactly?

SEED holders are covered by their investment in HBD. This HBD is safe & locked into the Savings account. This 'Safety net' is what allows anyone to exit without a penalty while we build the collateral in HBD.

In the meanwhile, my 'ready-go-to' funds will be playing as much as possible in the upcoming lotteries of DAO-Maker (with a decent cash flow coming from the CUB/BNB pool from CubFinance).

As we won lotteries and (presumably) a decent amount of money, The TOTAL value of all the assets behind SEED will increase (the unknown is the rate at which they will do so). This will be depending on the lotteries won and the future emission of SEED (new buyers).

Once the value of assets behind the trading fund starts increasing, I will increase the base value of SEED. Forcing the new buyers to purchase at a higher price (1,05$ ...1,2$ ...1,5$ ...2$ and so on).

The closer token sale at sight is GameStarter, less than 3 days away. Fingers crossed to get a spot.

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Upcoming posts

In the following posts, I'll detail a bit more about the specifics of 'How to value SEED' and the first holdings/earnings report.

In the meanwhile, I'm dropping a delta snapshot (CUB price lagging though), real total value is 5000$.

delta.jpg


And that's all for today. Have a nice weekend everyone & thanks for your attention.

**@seed-treasury has been allocated as a 100% beneficiary for this post.

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