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A New Take on Staking Rewards
When it comes to staking most blockchain projects have an approach to it with an inflationary method. There has to be new tokens issued in this model, to give staking rewards, which dilutes non-stakers, and for stakers, staking becomes a way to keep up with the inflation.
Seedify.fund has a completely different methodology that is utilized in a way that is correspondent with our incubation and seed funding mechanism. Our token supply does not increase through staking rewards (non-inflationary), and yet, it rewards token from the projects we incubated through the decentralized selection process.)
The formula of Seedify.fund staking reward mechanism works like this:
As mentioned in previous chapters our community selects the projects who will be accepted to our incubator, as well as getting $75.000 seed funding from us in return of 3% of the projects’ tokens.
25% of these tokens are for distribution for staking rewards (the rest of the distribution metrics can be found at chapter 2). If there is a lock condition due to them being early stage tokens, we do the distribution according to these release schedules projects set.
The more $SFUND tokens you stake, and the longer you stake them, you get more reward tokens from the projects we incubated, distributed to you each month.
We do the distributions on a monthly basis, and at the beginning of each month a new epoch starts, and 25% of all the tokens we get during that month from the projects, get redistributed to stakers at the end of the epoch.
Also to ease all this process for everyone, and to create the utmost transparency, Seedify.fund will have a staking dashboard, where you will be able to see ;
the current month’s rewards,
each project’s token distribution periods,
your stake and staking value,
how many tokens you are going to get from each project at the end of that epoch,
and one click staking and unstaking features
This staking mechanism will be a critical aspect to give additional financial benefits for our token holders, as well as to create a skin in the game approach for our community to research the projects throughly in their selection processes and involve in the Seedify.fund involvement programs more, since the financial gains on these rewards will be highly correlated with the projects’ strengths when they get released to the market, as well as how successful these projects become throughout their journey.
Seedify.fund decentralized incubation program is designed to have selected projects reach even higher potentials of success, although choosing the most promising projects by decentralized voting will of course increase these success potentials by high margins.
Thus, in simple terms, this staking mechanism not only gives rewards in a non-inflationary way but also incentivizes engagement of our community in DAO selections and community involvement programs of decentralized incubator further, because a large part of the financial benefits that gets accrued from staking and community involvement rewards will be tied to other relevant mechanisms.