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

View this thread on: hive.blogpeakd.comecency.com
· @empoderat · (edited)
$24.53
Key Update for SEED - Let's talk about Founder Fees & our Maximum Supply
![important.jpeg](https://images.hive.blog/DQmRQUMowPxxbBQhw5BhFguJTq4bYLQZuAjkHwqd9fB4pjR/important.jpeg)

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](https://peakd.com/hive-167922/@empoderat/updates-seed-is-running-out-of-supply-soon-r-and-news-about-my-founder-allocation)?

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

This brings us to the second point:

> Founder fees.

![fees.jpeg](https://images.hive.blog/DQmezAZrFXveQ87yHJgmYRq5mkHjn1yWjbvN5UdeqT3JyGV/fees.jpeg)

### 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](https://peakd.com/hive-167922/@empoderat/seed-funding-round-update-new-minimum-price-is-now-4usd). 

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

![badum.gif](https://images.hive.blog/DQmdpuEFhMUEgTJ6rQotTznA1AtDTJAowwsiSGZbtyq5YCm/badum.gif)

### 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

You can join us on [Telegram](https://t.me/empoderatss) and follow me on [Twitter](https://twitter.com/elempoderat).

![dishes.jpeg](https://images.hive.blog/DQmZGVEjiZubh1iYESHosPnQEpiw5pwWZKUyCsJdXhJNyoX/dishes.jpeg)


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vote details (220)
@alnash ·
Well, we can hardly do anything about it anyway LOL.

Yup, i think your plan is reasonable, it's Ok then.

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@alnash/re-empoderat-4om6bc)
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@empoderat ·
Yep, though, it's currently 100% centralized.

However, I always try to share my thoughts and believe me, I'm very in favor of listening to what all of you have to say. 

If any of my proposed changes are clearly disliked/not supported. I'm always open to hearing suggestions and changing things.  
👍  
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@ammonite.leo ·
That sounds like the way to go. The more skin you have in the game the better for everyone. I know these trades don't just trade themselves so I am happy to see you rewarded for your work.

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@bozz ·
I think that seems pretty reasonable.  I'd love to be able to go back and buy some more myself at a discount. I am with you, I didn't realize this thing was going to blow up quite the way it did when I first invested!

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@cryptoandcoffee ·
Sounds more than fair as none of this SEED is coming onto the market that everyone already has. Would have to be a complete idiot with the figures you are achieving. This is like a printing press creating wealth for everyone involved.

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@cryptoandcoffee/re-empoderat-74y5qz)
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@empoderat ·
And now with all the supply released... starts the scarcity game :/
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@dagger212 ·
Seems more than fair to me.  You put more skin in the game to the benefit of us all. Hard to see how anyone could be upset by this.  The only whining I've heard so far is why we all didn't buy more at the beginning.  That and @Trumpman's sexuality issues.  lol


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@empoderat ·
Thanks, dagger, Glad you find it a good deal.

As someone say a few days ago, ''the best trade is the one which both parts are happy with''
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@ecoinstant ·
This is the right way to align values, and its the approach I took with my INCOME synergy fund.  You buy your own tokens - and I salute you!

The discount is fine with me, you are buying late.  You have always treated us, your clients, with the utmost respect and put your own funds on the line to do it.

Keep up the great work!
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@erikah ·
I'm ok with it. It's a good solution. 

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@jfang003 ·
I am fine with this because you didn't start with a pre-mined tokens. So we are almost at the max token issuance of SEED and people will have no choice but to buy off the market.

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@empoderat ·
More or less, it's as you said
👍  
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vote details (1)
@oldmans ·
This sounds like a great way for you to garner the rewards you so richly deserve for the work you do for us and at the same time strengthen our position/confidence in the project.

Okay, now back to scraping together funds for the 25th. ;)

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@empoderat ·
It's like getting a payment upfront for the future. 

Since I don't need a 'monthly wage' or something I'm perfectly fine building more value into seed and collecting the rewards later. 
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@rob23 ·
Heard price went flying on your project, well done my friend.
👍  
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vote details (1)
@empoderat ·
Thx Rob, it's definitely going faster than expected!
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@shortsegments ·
It sounds fair.
Thanks for keeping us uptodate.
Thanks for the success of the project so far!

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@shortsegments/re-empoderat-6rvqj)
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vote details (1)
@empoderat ·
Thx! 
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@taskmaster4450le ·
Seems like a good approach.

Also good to align all on the same side of the equation.  Get to the point of trying to grow this to epic proportions.

I am good with what is presented.

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@taskmaster4450le/re-empoderat-3ctthp)
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@empoderat ·
Thanks :) 
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@trumpman ·
$0.74
Sounds ~~gay~~ good to me

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@trumpman/re-empoderat-3ukdfs)
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vote details (6)
@empoderat ·
Never gayer enough bud
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@urun ·
Some ideas for your share:

High watermark commission can be a thing, some financial companies work like that.

Another idea would be pay "dividends" in form of Tokens.

Example:

Seed starts: 100k Seed = 1$ each = 100K MC.

After 1 year: 100k Seed = 5$ each = 500k MC.

All Seend moves to stable coin/snapshot and every Seed holder gets 5x more seed tokens.

Seed is now worth 1$ again. Here you can include your fee, like x% of tokens moves to you for a management fee.

Would also allow another funding round for 1$ seed.

Now: 500k Seend = 1$ each = 500k MC.

Sell another X amount of Seed for 1$ each to increase the fund. Not bad at all IMO.

Would be the same like high watermark fees in a IMO cooler way also makes pricing more flexible ( add funds).

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@empoderat ·
$0.31
This is overcomplicating things. Not to mention that I would have to create a new token and airdrop everyone the correct amounts.

Why does 1 SEED at 5$ or 5 SEED at 1$ matter? In the end, it's the same. 

Mcap of SEED also doesn't matter. What really matters is the value that is backing it and the possibility for holders to get out (exit liquidity).

Or what I'm missing? 
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vote details (1)
@urun ·
True I mean backing assets and not MC :)

It would be IMO easier to expand. If at some point assets are worth 5x more, you can airdrop new seed to holders - your management fee, that goes to you.

You can also sell again and again tokens for 1$ + premium for example every time you airdrop tokens to holders to bring value back to 1$ each token.

Why do I think that's beneficial?

IMO in terms of managing and trading, it can have benefits. Also you can get your % more easily and in a semi-automatic way.

And maybe with more tokens, more trading will happen :D But yeah can also end up the same with more work, who knows :P

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