It’s been just over two years since the project launched, and the Seasonal Tokens economy is working exactly as intended. Today, Autumn overtook Summer to become the most plentiful token.
This follows the two previous seasons, in which first Spring, and then Summer were the most plentiful, and it comes less than two months before the Autumn halving on the 5th of December, after which Autumn will start to become scarce.
One thing worth noticing about how the prices change over time is that, counterintuitively, Spring and Summer in turn went through phases in which they were both the most plentiful token and also the most expensive.
We might expect that the most plentiful token would be the cheapest, but in fact the rate of production exerts more influence on the price than the total number of tokens in existence. Autumn is both the most plentiful and the cheapest right now, but after the halving, its price is expected to rise over time, making it the most expensive token, even while it remains plentiful.
What this shows is that the supply from mining is the dominant factor that determines the relative prices of the tokens, while the number of tokens in existence has a weaker effect. This is because miners need to sell tokens soon after they produce them in order to cover their operating expenses, and this continuous selling pressure drives the relative prices of the tokens to reflect their rates of production.
This is the mechanism that keeps the token prices cycling around each other, season after season, allowing investors to gain more tokens over time by trading along with the cycles.
Check out the trading simulator to see how it works for yourself!
And make sure to join our Discord server, where we have weekly trading contests using the simulator, every Sunday at 5pm UTC. It’s free to take part, and no real tokens are used in the contest, but everyone who takes part gets some real tokens, and there are bigger prizes for the winners!