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Platform Economics
Seedling is a for profit entity. Our primary source of income is the fees we charge for the use of our platform both by users and projects. Unlike traditional companies, however, Seeding is a web3 application owned by its token holders. SDLN holders, therefore, receive all profits generated by Seedling's operations.
As we describe in Investment Allocations, users are able to burn an amount of SDLN tokens to obtain allocations to invest projects listed on our launchpad. By burning SDLN, these users reduce the total circulating supply of the SDLN token. This measure does not affect the demand for our token, but it reduces its supply. This is a deflationary pressure increasing the value of all remaining SDLN.
Projects using Seedling to fund their token sale pay the project a variable fee. This fee is usually a percentage of the total funds raised for their project on the Seedling platform. 2.5% of all funds raised through Seedling will be used to buy back SDLN from the open market, and burn them (thus removing these tokens from the circulating supply).
In the instances where the target amount is not raised within the allocation period of a token sale (typically 24 hours), launchpad investments will become available to everyone regardless of their allocation availability. Investors in this phase will pay a variable fee over market price. 100% of this fee will be used to buy back SDLN from the open market, and to burn them (thus removing these tokens from the circulating supply).