What is a Redeem Value?
(Note: this term used to be known as the Pegged Value, so you might see community members call it “the peg.”)
Every day Sesameseed earns node rewards from different blockchains. Sesameseed keeps those rewards in reserve and instead distributes SEED token back to its stakers. Every SEED token in existence is backed by and redeemable for a portion of those reward tokens. This is called the redeem value.
In other words, the redeem value of SEED is simply an amount of node rewards from different blockchains for which SEED can be redeemed at any time. Every day, more node rewards are added to the redeem value.
The redeem value of SEED goes up over time the longer you hold it.
PS In case you’re wondering, those rewards that Sesameseed keeps in reserve for the redeem value are used to stake for Sesameseed, which increases the amount of rewards we earn, which attracts more stakers and increases the redeem value, which increases the amount we can stake for ourselves, which increases our rewards…it’s a positive feedback loop, and our community of SEED holders get all the benefit!