What are Seed Tokens and why does it matter?

One of the aspects of utility for the GenesysGo Shadowy Super Coder (SSC) every NFT in a wallet will result in an airdrop of 10,000 GenesysGo tokens from our Seed Token allocation. You minted 3 SSC NFTs? Great! 30,000 seed tokens on the way to you friend!

However, what exactly are “seed tokens” and why should you care?

Seed Tokens are an allocation of the total supply that is sold at a MASSIVE discount relative to where the token will IDO

So, early backers of a project are rewarded by being given the opportunity to purchase tokens. These tokens are awarded at significantly cheaper rates than what the public will be able to have access to them for.

This graphic is just a random one I found for illustrative purposes and is not from a Solana project or team

In this case, 18% of all tokens are set aside as seed tokens. The hypothetical math might look like this:

Seed Token Price: $.05

Public IDO Price: $.25

So, seed backers of projects are receiving the same amount of tokens at a 5x discount compared to what you or I would be able to purchase those tokens for.

Meaning that, anyone who received seed tokens immediately has a 5x gain on their tokens.

Who typically receive Seed Tokens?

Take a look at the image below, every project that you love and support on Solana is a “start up” and generally follows this lifecycle

Notice anything? See, as a project’s revenue increases it becomes worth more.

All during that process of amazing growth and the realization of potential the community (the community that has been hyping that project, hanging out in Discord, helping to beta-test the platform) isn’t a part of that amazing growth.

Instead of everyone being able to participate, it’s only a few centralized groups, specifically Venture Capital firms, that get to reap the benefit of the exponential growth that fresh startup projects are able to produce.

Now, don’t get me wrong. I’m not demonizing early backers or saying that they are all bad (even though there are some very obvious bad actors in the VC space). Some do provide essential services, guidance, and take the risk of supporting projects that fall apart and never hit their full potential.

However, the reason I take issue with this setup is twofold:

  1. Centralization — These are highly centralized entities which lack transparency and nine times out of ten don’t receive their payday until they liquidate the tokens they were awarded as an early backer (rug pulls)
  2. Lack of Inclusion — Many projects have an extremely passionate community that have been followers, testers, and users since day one. These communities are the true heartbeat of any new project and so these communities deserve the chance to be early backers as well.

What this has to do with the SSC NFT Drop

GenesysGo is a RPC server infrastructure project. Our users are the developers that build the protocols that the Solana ecosystem uses and loves every day.

Users of our RPC services are placing trust in us. They’re trusting that we will provide the power needed to keep their protocol running 24/7. Community members trust us to make sure their orders are passed through to the chain in the fastest and most accurate manner possible.

We take that trust extremely seriously and, I believe, it shows in the services we provide. However, we want to reward that trust.

The goal with our NFT drop is to try to do something new and to push the potential utility of NFTs just a little bit further. As such, we are using our NFT as a “marker” which will flag to receive 10,000 GenesysGo tokens.

The mint price of our seed token is 3 SOL.

3 SOL = approx 600 USDC

600 USDC ÷10,000 GenGo tokens = .06 per GG token

Let’s recap the utility

I realize that with SOL trading where it is, 3 SOL seems expensive but I think it’s important to recap the utility that we are trying to provide to the ecosystem as the context is very important!

  1. If we sell out in the first 24 hours then we will be providing the entire ecosystem with unthrottled, unlimited access to our full RPC server infrastructure at no cost till Dec 31st, 2021 (Jan 31st, 2022 if you are already a customer). This will require hundreds of servers but, across the entire developer community, it has the potential to save millions.
  2. Every 1 SSC NFT a wallet has will result in 10,000 GG tokens ($.06 per token) being sent.
  3. Holders of the SSC NFT will be automatically included in the Shadowy Super Coder DAO upon formation. Access to the SSC DAO discord channel available immediately in order to make their voices heard as the DAO takes shape in both detail and direction with three ultimate goals in mind: Educate, Inform, and Guide both users and developers about Solana, it’s software architecture, it’s hardware infrastructure, and the needs of the community that those things should be addressing.

It is our hope that the ecosystem sees the value in these things and we believe that they will. While, it may not be perfect, the groundwork is being built to allow anyone, whether they are a VC, a Solana whale, or your average user, the ability take part in shaping, guiding, and strengthening an often overlooked and yet absolutely mission critical part of the Solana ecosystem!

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
GenesysGo

GenesysGo

GenesysGo is a Blockchain Service Provider. We provide robust and secure infrastructure to give builders, stakers, and users the performance they deserve.