Worksheet – SEED for Native Stakers and SEED holders
On every represented blockchain, community staking for Sesameseed can be viewed as coming from two different groups:
- Native stakers – those staking with the native token to the SEED node
- SEED holders – since every SEED is backed by native tokens, and those native tokens stake to SEED nodes on each chain
Therefore, when accounting for the contribution to daily node rewards from each blockchain, we must make sure to realize there are two groups providing that contribution. Each group may be rewarded accordingly.
Imagine there is a SEED node on Blockchain X.
There is only 1 native staker who is staking with 1 million X Token, and 50 million SEED in circulation that are backed by 1 X Token each.
With 51 million X Tokens staked to Sesameseed, Blockchain X earns an allocation of 10,000 SEED. The majority of that would go to SEED holders and only a small portion to that lone native staker.