"A Deflationary Coin is a crypto asset mostly distinguished from other crypto assets by it's unique feature of having it's maximum supply diminish with time, commonly through the "Coin Burn" and/or "Buyback and Burn" functionality embedded in the network's own coding or through smart contracts."
Nextgen Cryptos, June 20th, 2020
The "Coin Burn" Functionality
Coin burn and Buyback and Burn are a feature seen on some second generation cryptos that ensure diminishing supply of the asset in question, with time. This causes deflation of the asset and ensure "ever increasing" in the asset value. This feature has been made popular by the giant crypto exchange, Binance who have been actively buying back their utility coin BNB and burn them every quarter since 2017.
The burn function is usually executed through a smart contract where the coins are typically sent to an address that no one has access to (the burn address) thus ensuring that the coins sent to the burn address will never become available on circulation once sent there.
The SEED project uses this feature as the centre-point of their projects artitecture.
SEED on TRON and Ontology
The Sesameseed project uses SEED, the project's TRC-10 token on the Tron blockchain to reward participants who have delegated their stake to the sesameseed pool. At the time of writing 1 SEED trades for $ 0.02 (1.25 TRX) on poloniex.org and trontrade.io. Delegators receive a daily drop SEED token, and the amount of SEED you receive is directly proportional to the amount of TRX "stake-votes" you have pledged to the Sesameseed pool. On average, a 100k TRX ($ 1,600) stake with their pools earns you about 12 SEED tokens ($ 0.24) a day.
Likewise, the platform is also similarly available on the Ontology ONT network, and SEED earned can be redeemed for either ONT or ONT gas, pegged at 0.00049 ONT and 0.0021 ONG respectively.
SEED, A deflationary Coin
There are currently 53 m SEED coins in circulation held by 30 K accounts, with about 100,000 SEED max distribution in a day. The budget for distribution follows the 80-10-10 model which means that 80% of daily earnings go to delegators, 10% for operating expenses and 10% to their dapp development platform called Seedgerminator which we will cover shortly.
Due to the fact that SEED tokens are burned to redeem either TRX or ONT/ONG the value of SEED is ever increasing with time. 1 SEED was pegged at 1:1 on the tron blockchain when they launched back in October 2019, as of now 1 SEED yields 1.15 TRX when sent to the TRX burn address. This shows and increase of 15% in it's value against the TRX in a period of about 8 months.
Seed on Exchanges
Not suprising is the fact that SEED is more expensive to buy/sell on exchanges that it is on its buyback and burn plan. As mentioned previously SEED trades for about TRX 1.25 (compared to TRX 1.15 in the buyback and burn plan) on at least two major TRX DEXs namely poloniex.org and trontrade.io. So, short term investors earning daily SEED may prefer to trade their earnings at exchanges rather than the buyback and burn plan. The fact that SEED is more expensive on exchanges suggests that the community has seen the long term potential of this deflationary coin and are willing to buy it slightly more expensive as they anticipate further price movement in the upward direction with time.
Hodling SEED
Another impressive feature is that one doesn't necesarily need to stake and vote TRX/ONT to gain earnings from SEED. By simply hodling SEED on a TRX/ONT wallet, the investor will be paid daily earnings in seed as well. In fact, on a dollar to dollar comparison, hodling SEED is more profitable than delegating your stake to their pool. Hodling SEED would give you about 12% ROI P.A. while delegating would give you 10% ROI P.A. This explains futher as to the reasons why SEED is more expensive on exchanges. Bear in mind that you would need to hodl at least 7,000 SEED ($ 140) to receive daily rewards, if you have less you'll still get rewards but more infrequently (after 2,3 days, weekly..etc). The lesser the more time as they do not distribute below 1 SEED.
Seedgerminator
This is a dapp crowdfunding section of the SEED network designed to enable the community to fund new dapps, mainly on the Tron blockchain. By using SEED to fund new dapps, investors get privileges and discounts. When the dapps in question make a profit, the SEED holders receive a portion of the profits automatically. By the time of writing, their website boasts having successfuly funded 10 dapps with 75 m TRX (about $1.2m) raised.
Conclusion
I would recommend investing in SEED as a long term investment especially for long term investors on the TRX/ONT platforms, as there is certainty of increasing token value. Lets say for example you are a TRX hodler, then it costs you nothing to delegate your stake to the SEED network and earn stake rewards in SEED tokens of which by simply leaving the SEED in your wallet, then you will be receiving more and more SEED, of which you can redeem them for TRX of sell them on an exchange if the need should come.
I find Sesameseed to be one of the profitable and promising crypto projects out there.