On the 5 of December 2023 the mining supply of Autumn tokens will be reduced from 120 tokens to 60 tokens every ten minutes:
Tokens Per Reward every 10 minutes
This effectively doubles the cost of production of Autumn tokens overnight. These changes in the cost of production of the four tokens produces predictable oscillations in the relative price of the four tokens.
So What?
Traders can benefit from these predictable price oscillations.
In order to understand what is the use of this price mechanism let us consider the following example. We see the prices in Ether of the four Seasonal Tokens over the last couple of years.
It is true that the dollar prices of the tokens have been falling for two years in the worst crypto bear market so far since the creation of Bitcoin, but this will highlight the fact that the Seasonal Tokens price mechanism is independent of the external market conditions, and depends only on its own internal economics.
Suppose that on May 20 2022 we trade X Winters for Spring. Point A in the graph.
Then the Spring Tokens Halving happened on June 2022. Few months later Spring was the most expensive of the four tokens.
Then on February 13 2023 we trade the Spring for Summer. Point B in the graph.
Then the Summer Halving happened on March 2023 and few months later Summer became the most expensive of the four tokens.
Then on October 27 2023 we trade the Summer tokens back to Winter again. Point C in the graph.
This completes a full cycle for our Winter tokens. The table below shows the prices of the tokens in ETH on those dates:
| May 20 2022 | 0.000009184 ETH/Spring | 0.00001478 ETH/Winter |
|---|---|---|
| Feb 13 2023 | 0.0000045 ETH/Spring | 0.00000286 ETH/Summer |
| Oct 27 2023 | 0.000001939 ETH/Summer | 0.0000013682 ETH/Winter |
Therefore, if we start with X number of Winter Tokens on May 20 2022, after the complete cycle of trading we obtain 3.59*X winter tokens:
Conclusion:
If you just hold to your X Winters you will have only X Winters at the end. But by using the price oscillations you can have 3.59 X at the end of the same period of time.
This is 359% better than just holding the tokens.
Where does this value comes from?
The tokens are produced by proof of work mining, this is a way to make sure that the tokens are anchored on an economic reality, and they follow the same economic principles followed by commodities in the traditional economy.
Traders are not getting this value for nothing. By trading the more expensive tokens for cheaper tokens they are helping the miners to recover the mining profitability of the token whose cost of production was doubled.
To learn more about Seasonal Tokens price mechanism check out this YouTube playlist:
But the Dollar prices are falling.
True, over the same period of time, the dollar value of the X Winters has dropped by a factor of ten. So despite the gain by a factor of 3.59 we are still in red numbers. This has affected all ERC20 tokens. Part of it is due to the overall market conditions, and part of it is due to the fact that every ten minutes new tokens are being produced. Miners have to sell the tokens to recover the cost of production, and so there is an inflationary phase where prices are being pushed down by the influx of new tokens.
This has nothing to do with the popularity of the tokens, which are not being advertised to avoid any legal liability coming from "unqualified financial advice". But after several of these halving events, the inner workings of the four tokens system are clear for future investors who will be able to analyze and apply the principles of real world economics to this digital commodities.
You can see how this bear market has affected other tokens, 0xBitcoin price for example has fallen by a factor of 12, and many other crypto projects are waiting for the Bitcoin halving to start a new "Altcoin Season" to see some recovery.
0xBitcoin PoW ERC20 Token Price History
In Seasonal Tokens we are not just waiting to see what happens. New technologies are being deployed to tackle the problems arising in decentralized token economics.
Join us to learn more about Web3 and Decentralized Economics.
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