Valuing SEED

LeoFinance
1 month ago
(edited)
3 Min Read
553 Words

Over the past few days have been thinking about a proper way to value SEED in order to avoid giving late participants an unfair advantage vs early ones when fast increases in price happen.

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The main problem is people buying the token for 1$ when the assets behind SEED escalated very fast to a higher value, which is something that will happen for sure when we start receiving allocations into Private sales.

Implications and Problems.

One 'problem' that you have to deal with when you participate in this kind of Private Sales is that sometimes (almost always if your allocation is high enough), your tokens are vested for a defined set of time (not all at once!).

For example, with the upcoming Game starter Sale, Only 20% of tokens are available at the beginning. The 80% remaining are being distributed on a quarterly basis.

This means that 100% of tokens are distributed over a period of a year and a half after the token sale.

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Do you see the problem? How do we value SEED if a big chunk of its wealth is locked?

This is where we have to break down the token into 3 values:

Safe Value, Flex Value, Locked Value...

As a proof of concept, I'm throwing out these 3 values, which I'm explaining below:

Safe Value: The core of SEED when we talk about 'security, 100% of this value is composed of all the HBD allocated into the 'Savings' section of the @seed-treasury account.

Flex Value: This value comes from the aggregation of all the off-chain assets which are free from locks/vesting periods.

Locked Value: Opposite of 'flex' value, this is, off-chain assets with vesting periods ongoing.

As an example:

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As a provisional measure...

And as a 'fair' way to value SEED upon the next weeks/months, the token price will be backed by the 100% of the Safe Value and the Flex Value, plus 1/3 of the Locked Value (never less than 1$).

Please note that the current 'Locked Value' is 0, so this isn't affecting yet. However, wanted to keep you updated regarding the matter.

That means once we win the first allocation/s, SEED price will be worth more than 1$.

Once that happens I will give you a 7 day notice to buy SEED at the base price of 1$ until I raise the base value. Also note that my intention is to avoid at all costs to lower that base value later, so I'll do my best to be fair with new buyers while protecting old ones.

More details on y next post which will probably be the first 'earnings' report.

Thank you everyone for the amazing support so far.

Any doubts/suggestions/thoughts? Keep in mind that I'm a single person managing this, and I'm by far not perfect, so don't hesitate to share your thoughts If you believe it can help to improve the project.

I'll keep you updated, as I already started participating on the first SHO (Strong Holder Offering). I don't know yet If I managed to get a spot :) Fingers crossed!

EDIT: We won. LFG!

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You can join us on Telegram and follow me on Twitter.

***@seed-treasury has been allocated as a 100% beneficiary for the posting rewards :)

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