About Seasonal Tokens
The four Seasonal Tokens are trustless, decentralized cryptocurrencies mined using proof-of-work. They've been designed so that their prices will oscillate around each other over the course of years. This allows investors to increase their holdings over time by trading the more expensive tokens for the cheaper ones.
Once every nine months, the rate of production of one of the tokens is halved. That token goes from being produced at the fastest rate of the four, to the slowest rate. As the market adjusts to the decrease in supply, that token goes from being the cheapest token to the most expensive.
The first halving took place on the 5th of June, 2022. Over the following months, Spring went from being the cheapest token to the most expensive. The era of cheap Spring ended, and the era of cheap Summer began. The chart below shows how the prices evolved as the market reacted to the effects of the halving.
The theoretical price chart below shows how the prices can be expected to evolve over the coming years, presuming that the market reacts to future halvings at the same rate as it did to the Spring halving. Analysis of the price history has shown that the ratio of the four prices moved at approximately 1% per day towards the new ratio of the times needed to produce each token by mining.
The next halving will take place on the 6th of March, 2023, when Summer will become produced at the slowest rate. Autumn is then expected to become the cheapest token for the following nine months.
Trade Tokens for More Tokens
Investors can benefit from the changing of the seasons by trading the more expensive tokens for the cheaper ones. Before the Spring halving, the prices were close to the ratio 5:6:7:8. Five Winter tokens were worth eight Spring tokens. Now that the prices are close to the new target ratio of 10:6:7:8, eight Spring tokens are worth approximately 10 Winter tokens.
A Winter investor who anticipated the change of seasons would have traded 5 Winter tokens for 8 Spring tokens before June, and would trade those 8 Spring tokens for 10 Winter tokens today. By doubling the number of tokens they owned, that investor could increase the value of their investment without relying on price appreciation.
By following the rule: Always trade tokens for more tokens of a different type, investors can guarantee that the total number of tokens in the investment will increase with every trade. The risk of making a loss, measured in tokens, can be eliminated. The trading simulator allows investors to see how their holdings can grow over the course of ten years by following this rule.
Inception and Motivation
The Seasonal Tokens were conceived as custom-designed investment cryptocurrencies, inspired by Bitcoin. Bitcoin's rate of production is halved once every four years, leading to a bull market over the following year as the market price rises in reaction to the decrease in supply. With four tokens, and halvings every nine months, investors can take advantage of the same mechanism more than five times as frequently as Bitcoin's halvings allow.
An introduction to the motivation and background behind the project is given in the Nasdaq interview. More information about the origin and development of the project is available in the white paper and on the Medium blog. An in-depth explanation of the early history of the project is provided in the HodlersHub interview.
Trustless and Decentralized
Inspired by Bitcoin, the tokens have been designed to have the same characteristics of trustlessness and decentralization. They're mined using proof-of-work, and nobody has any more control over the tokens than anybody else. Every investor is on the same footing.
The tokens are commodities. They're not issued by a corporation. Investors who buy the tokens aren't betting that a business will succeed. They're investing in commodities that they know will be harder to obtain in the future. Like Bitcoin, the tokens are unaccompanied by any promise that could be broken. They're simply mineable, tradeable tokens with specific production schedules.
Mineable and Tradeable
Unlike tokens that can be produced at will and represent the liabilities of a corporation, the Seasonal Tokens can only be produced by proof-of-work mining. Nobody was given any tokens for free. The project founders need to mine them and buy them like everybody else in order to obtain them. Instructions for mining the tokens can be found in the getting started guide.
The smart contracts that control the issuance and transfer of the tokens were deployed on the Ethereum network. Because they all reside on the same blockchain, they can be easily traded for one another on decentralized exchanges such as Uniswap. They also benefit from Ethereum's security, and don't need to maintain a peer-to-peer network or defend against 51% attacks. This video shows how easily the tokens can be bought and traded using the MetaMask browser extension.
Developed Using Industry-Standard Best Practices
Security and interoperability were the central priorities during the development of the Seasonal Tokens smart contract code. The tokens comply with both the ERC-20 and ERC-918 standards, making it possible to store and trade them using existing software wallets, and mine them using existing mining software.
The smart contracts were audited by three independent teams of security experts to ensure that the code does exactly what it's intended to do. Bug bounties were offered during the weeks of public testing that preceded the launch of the tokens on the Ethereum main net. Smart contracts require a high degree of confidence that the code is bug-free, because they can never be changed after they've been deployed.
The Tokens and the Project
The tokens themselves are implemented as smart contracts that nobody controls. They'll go through their cycles for the next 200 years with no human oversight or administration. There is no corporation controlling or issuing them. The contracts are set in stone and unchangeable.
The Seasonal Tokens project is a collaboration of miners, farmers, investors, developers and cryptocurrency enthusiasts, who develop tools and educational material to allow everyone to learn about and use the tokens. By spreading awareness and educating miners and investors about the tokens through articles, interviews, podcasts, explainer videos and other material, participants in the project seek to help a wide audience understand the investment properties of the tokens.
Everyone is invited to join our community on Discord and meet the team behind the project. Community members have access to updates, announcements, initiatives, competitions and an inside view of the project development and future plans.
More information about how to use the tokens on the Ethereum and Polygon networks is available in the tutorials on the Reddit wiki.