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Key Update for SEED - Let's talk about Founder Fees & our Maximum Supply

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empoderat
@empoderat
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Okay, this is one of those posts which come after some deep thoughts.

First a bit of background

Since I started the Seed project I have been concerned about 2 main subjects (apart from being profitable, of course):

  • The time at which the maximum supply is reached.
  • Founder fees.

Both things are extremely important, as they make or break a project.

For example, without a well-thought plan to reach the initially designed maximum supply holders can't make long-term projections, because If the supply expands at the same time the profits do, what's the point if everyone is being diluted constantly? Add insiders dumping at presale prices and you have the perfect cocktail for angry retails.

For that reason, I decided to start SEED without a 'founder-premine' since I bought SEED like everyone else. It's fair and what better way to start out than giving everyone equal opportunity?

That said, I didn't expect (not even in my wildest dreams) such a positive reception and within a very short time. I even feared being kicked out of my own project when Marky started buying. Do you even remember?

That's the bad part of starting to do something on the fly, I guess.

This brings us to the second point:

Founder fees.

More about 'founder fees'.

SEED never had a detailed plan about what kind of fees I would be getting as the founder/operator. (Between other things because I didn't know yet If this mad thing was going to work, hence why losing precious time in that matter). Only this was said:

The first +25% of profit/year will be free of management fees. All profits exceeding that 25% will be charged with a 10% fee. Preferably charged when moving profits from the trading account to the treasury.

And obviously and looking at things in retrospect I won't charge a 10% flat yearly fee as this represents a step back for everyone since ''my own interest'' would be in contrast with the ''overall interest'' of all the remaining holders.

Instead, I would like to implement a model similar to the one which is adopting Polygon Cub in the form of Protocol Controlled Value or PCV.

That means, using a small % of Farming profits/Revenue not only to benefit the project as a whole but also to receive my fair share as the project operator.

I don't have anything ready to show yet but I would like to share what I was thinking about the matter. It's blackboard time for now while SEED keeps growing.

Regarding the work already done...

As I stated before:

  • I have not paid myself yet for the work already done for SEED.

But I don't want to take anything out yet for the aforementioned reasons!

Instead, I had an idea that seemed fair to me:

  • I (@empoderat), I'm going to buy the remaining 10K SEED for a 25% discount on 4$ (the minimum price which everyone is going to pay in a week, approx).

  • That means reaching (almost) the maximum supply of SEED (96,5K out of 100K) and adding 30K$ in BUSD into the portfolio.

  • The remaining 3,5K SEED are going to get sold as stated in the post from earlier.

I'm taking the 25% discount as a 'founder benefit'. (Or If I may be more vulgar; 'because I say so').

Advantages for both parties:

For me:

  • I get a very decent chunk of SEED for a 'fair' discount (which I get as my payment).
  • SEED as a project gets much-needed liquidity. (Remember, our DAO position is untouchable for optimal results).

For you:

  • I'm buying at a price that currently increases everyone else value. Even at 3$.
  • That supply is in my hands, which means that won't see the light of the day anytime soon. If ever SEED closes its doors, I will be the last one to abandon ship (basically I'll buy the supply from everyone else).
  • No. More. Releases. SEED is fully diluted now.
  • Interest of the founder is (even more) aligned with the rest of the holders' interests.

..........

TL;DR

  • A better fee model is being worked on.
  • I'm buying the remaining 10K SEED at 3$ (4$ less a 25% discount).

The 30K BUSD is going to be added to the @seed-treasury cointracking in a few hours maximum. Same for the newly SEED minted.

Doubts? Questions? Rants? Shoot!

100% of blogging rewards paid to @seed-treasury. Remember you can follow the portfolio in real-time here:

https://cointracking.info/portfolio/seedtreasury

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