A Critical Date For This New Crypto Project Is Fast Approaching

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A newcomer to the crypto market dominated by Bitcoin BTC/USD and Ethereum ETH/USD, Seasonal Tokens may be set to experience its first major milestone. 

In just a few days, it reports that it will enter a new phase when the rate of production of Spring tokens is cut in half. Spring will go from being produced at the fastest rate of the four tokens, to being produced at the slowest rate. The cost of producing Spring tokens through proof-of-work mining will double. Spring tokens will go out of season and then Summer tokens will be produced at the fastest rate for the next nine months.

Spring tokens have been cheap and plentiful compared to the other tokens since mining started nine months ago. The era of cheap Spring tokens is coming to an end. For the next nine months, miners will be producing fewer Spring tokens every day than any of the others. The abundance of Spring tokens will disappear over time, and the price of Spring might eventually rise in comparison to the other tokens.

The Spring halving will activate, for the first time, the mechanism that Seasonal Tokens uses to make the prices of the tokens oscillate around one another over the long term. Until now, the prices of the tokens relative to each other have been stable. They’ve been close to the ratio of 5:6:7:8 for Spring, Summer, Autumn, and Winter, reflecting the relative costs of production.

The halving will set the prices in motion for the first time. Later this year, the price of Spring will start to rise in comparison to the others. Investors will trade other tokens for Spring tokens, putting more upward pressure on the price. The cost of production of the four tokens will have a ratio of 10:6:7:8, and the prices will trend toward this ratio over the long term, possibly eventually making Spring the most expensive of the four tokens.

About nine months after Spring’s price starts to rise, the same thing will happen with Summer. Investors might trade their other tokens for Summer, knowing that Summer may become the most expensive next.

The system was designed to let investors do this. By always trading more rare tokens for a greater number of cheaper tokens, investors can increase the number of tokens they own with every trade. The four prices are meant to oscillate around one another, so the tokens are equally valuable in the long term, but they have different prices today.

The system was engineered this way so that investors can take advantage of the predictable changes in the relative prices of the tokens. It allows the investment to grow in value even if the average price of the tokens doesn’t rise over time. The tokens that investors accumulate when they trade tokens for more tokens are all produced by work done by miners. Trading the tokens in a cycle could allow investors to receive a fraction of the real economic value produced by mining.

Investors actively participate in the economy and provide value to the miners by reallocating capital between the tokens. In exchange for this, they get a fraction of the new tokens. The Seasonal Tokens team believes that people who invest aren’t just passive observers, watching the price and hoping that it will go up. They’re active participants, and they can earn a well-deserved profit by shifting their investments from token to token as the mining costs change.

Visit the website at seasonaltokens.org to learn more.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Photo by Lukas Blazek on Unsplash

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