Results from Year One of the Seasonal Tokens Economy

The smart contracts for the four Seasonal Tokens were deployed on the 5th of September, 2021, but the tokens didn’t have a market price until farming started four months later, on the 5th of January, 2022.

The farm incentivized miners and investors to provide liquidity on Uniswap, which led to liquid markets in which the tokens naturally found their market prices through the interaction of supply and demand.

On the 5th of June, the Spring halving took place, and Spring tokens went from being produced at the fastest rate of the four, to the slowest. The market price responded over the following months, bringing Spring from the cheapest token to the most expensive.

Nobody knew how long after the halving it would take for the market to start responding, or how fast the prices would move when it did.

Now that the year has come to an end, and the market data is there for everyone to review, the results of the first experiment in multi-token proof-of-work economics are available.

In brief, the prices moved towards their new target ratio of 10:6:7:8 at a rate of 1% per day after the halving, starting from values close to their original theoretical ratio of 5:6:7:8.

By October, Spring had become the most expensive of the four tokens. This shows that the market responds efficiently to changes in the rate of supply.

Using this new information, the Seasonal Tokens team has constructed a new model of the future expected evolution of the relative prices of the four tokens. The theoretical future relative prices can be seen on the charts page of the website.

This new model had made it possible to construct a trading simulator that allows users to practice trading tokens for more tokens as the prices change over the coming years, and see how fast their investments can grow.

The first year of market data has shown that the fundamental premise of the Seasonal Tokens project is sound: Token prices can be made to oscillate around one another predictably, using the economics of proof-of-work mining.

This means that investors can increase their holdings over time, by trading the more expensive tokens for the cheaper ones, which become the most expensive later on, allowing the investors to trade again.

To learn more, visit the website at seasonaltokens.org.