Background & Motivation
Seamless Protocol is built on the principles of facilitating transparent and reliable DeFi experiences that drive financial opportunity and permit open and fair access for all participating in the web3 ecosystem. At the heart of this vision lies a commitment to creating clear, sustainable and meaningful utility to SEAM token holders, who are the community served by the protocol.
This proposal introduces initial SEAM staking tokenomics that are simple and transparent. By staking SEAM, community members can actively contribute to the protocol’s success while benefiting from protocol growth.
The key motivations for this proposal include:
- Rewards for Contributions: Establishing clear pathways where value creation should directly reward those who contribute most to the protocol’s success.
- Simplicity & Transparency: Creating a straightforward, predictable and accessible tokenomics structure that aligns the protocol, users and active contributors while avoiding complexity that obfuscate value accrual. Supporting an ecosystem that fosters trust and engagement.
- Sustainability: Laying a foundation to build on for long-term alignment of incentives between the protocol, its users, and token holders.
This approach enables Seamless to drive innovation while fostering a fair and thriving ecosystem for all contributors, positioning it as a leading DeFi protocol and ensuring long-term sustainability for all stakeholders.
Tokenomics Proposed Structure
The initial staking mechanism introduces a Staking Vault for SEAM token holders. This structure is designed to provide utility and protocol resilience.
- Staking Vault Overview:
- Users stake SEAM in a dedicated vault (where rewards are emitted), locking tokens, unless a cooldown and withdrawal is initiated (reward accrual is paused during cooldown).
- While staked, participants:
- Contribute to the liquidity and stability of the ecosystem;
- Earn pro-rata SEAM or esSEAM emissions;
- Earn a proportional share of fees and revenue (e.g., Reserve Factor, fees from future product launches) accruing to the DAO;
- Can continue to delegate voting power
- Reward Distribution:
- Participants can track their live rewards, APR breakdowns, and protocol fee contributions through an intuitive user interface in the app (designed and built at a later time).
This foundational structure balances transparency, and sustainability, while rewarding users who are contributing to the protocol, positioning SEAM as a core element in the Seamless ecosystem.
Goals & Objectives
- More utility for SEAM.
- Improved engagement with protocol and community growth.
- Increased buzz around SEAM and its ecosystem.
Call to Action
Let’s work together to make this vision a reality. Share thoughts and feedback by replying to this thread. Once there has been sufficient discussion and input, this may follow the GP track (i.e. snapshot voting) before moving to the PCP track in the future.
Appendix
Note, it is my belief that the following tokens within the Seamless Ecosystem should be seen in the following light:
| Type | Description | Responsibility | Incentives |
|---|---|---|---|
| SEAM | Liquid governance token | Governance | NA |
| esSEAM | Escrowed variant of SEAM for distribution purposes for long-term alignment (disincentivize toxic farmers); governance responsibility | Governance | NA |
| staked SEAM | Locked SEAM | Governance, maybe even something like insurance/safety module/junior tranche | Reward incentives |