Estimated Impact to SEED Rewards from Ontology Foundation Bonus Changes Sesameseed Follow Feb 1 · 3 min read

On January 21 2020, Ontology announced changes to the way they will distribute the monthly Foundation Bonus for node operators. Sesameseed has analyzed these announced changes and estimated the impact they will have on the SEED rewards economy.

The following is copied from the Ontology announcement. The listed changes are:

Based on the total effective ONT amounts, ONG bonus will be shared evenly amongst each staked ONT. The bonus will be distributed to the top 49 nodes, and nodes will share the bonuses to their stakers according to the fee sharing ratio they set.

Ontology also disclosed that 37,500,000 ONT is currently staked by the Ontology Foundation. These ONT will not be eligible as an authorized stake for Foundation Bonus rewards.

Community members who have authorized ONT staked for Sesameseed earn an amount of SEED rewards in proportion to the node and foundation rewards received by Sesameseed monthly. Prior to the change, Sesameseed’s SEED node on Ontology generated ~17,000 ONG per month. This 17,000 ONG is used to mint new SEED which are distributed to the current ~600,000 ONT staked and authorized for Sesameseed.

After the announced Ontology node rewards changes take place, Sesameseed estimates the SEED node on Ontology will be generating ~5,714 ONG* per month. This projected ~5,714 ONG per month will be used to mint new SEED which will be distributed to the current ~600,000 ONT staked and authorized for Sesameseed.

This reduction in node and foundation rewards will impact Sesameseed community members with staked ONT. The expected reduction in the rewards paid by Ontology will change the amount of USD daily value contributed to the SEED rewards economy by Ontology. Sesameseed anticipates this change in the balance between the USD daily value of TRON and Ontology will result in more SEED being rewarded daily to the TRON blockchain and less SEED being rewarded daily to the Ontology blockchain. Further information on how many SEED are distributed to each Sesameseed represented blockchain is available in the article SEED Tokenomics Update.

Sesameseed will continue to be a node operator on Ontology and the current rewards model will remain in place. After the announced changes have taken effect, the Ontology rewards model will be re-evaluated as discussed in the recent article on Sesameseed Node Operations Model.

SEED held on any chain will be able to be redeemed for the full pegged value in the near future. Changes to the Ontology network’s node rewards structure, or Sesameseed’s rewards model will not impact the ability to redeem SEED.

* Node rewards will be directly in proportion to the total stake authorized relative to all authorized stake on the Ontology network. 600,000 ont stake to Sesameseed / 87,500,000 ONT staked to all nodes * (10,000,000 ONG / 12 months) = ~5,714 ONG.