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Name: Seil Escrowed Token
To promote decentralized community governance for the network, Seil would allow holders to propose and vote on governance proposals to determine future features, upgrades and/or parameters of Seil, with voting weight calculated in proportion to Seil staked (which is then converted to non-transferable xSeil, an escrowed governance token, to represent voting power). The right to vote is restricted solely to voting on features of Seil; it does not entitle Seil/xSeil holders to vote on the operation and management of the Company, its affiliates, or their assets or the disposition of such assets to token holders, or select the board of directors or similar bodies of these entities, or determine the development direction of these entities, nor does Seil/xSeil constitute any equity interest in any of these entities or any collective investment scheme; the arrangement is not intended to be any form of joint venture or partnership.
Users can get xSeil by directly converting Seil tokens, or through participating/contributing to the protocol (e.g. providing liquidity).
In addition to governance utilities, Seil functions as a loyalty membership point which embeds a license granting active participants exclusive access to selected products or services. By holding the staked version (xSeil), users may upgrade their loyalty tier (based on the amount of xSeil held, as well as user activity). The premium loyalty tiers would allow users to get greater access to the ecosystem features and more preferential terms, for example certain premium functionalities, exclusive products/services, or greater or more unique transaction rewards.
Conversion & Redemption
Seil and xSeil can be converted with each other mutually, but the process and rules are different depending on the converting direction.
(1) Conversion from Seil to xSeil
Seil can be instantly converted into xSeil at any time. The conversion ratio is 1:1.
(2) Redemption from xSeil to Seil
The redeeming process to convert xSeil back to Seil involves vesting. The duration of the vesting is selected by the user. The conversion ratio will increase in proportion to the vesting duration selected by the user:
The minimum vesting duration of 15 days gives a 1:0.5 conversion ratio
The maximum vesting duration of 180 days gives a 1:1 conversion ratio
Users won't receive Seil until the vesting period of the redemption is fully ended.
When the user chooses a vesting period that is shorter than the maximum allowed duration (conversion ratio < 1:1), the unclaimed remaining Seil token will be forfeited when the vesting period ends and redemption process is done. The forfeited portion will be transferred to the Eco Treasury for consolidating insurance funds and long term community incentivization of the protocol.
(3) Cancel redemption
Before the vesting period of a redemption request comes to an end, users can freely cancel the redemption. In that case, the user will retrieve its entire amount of redeeming xSeil, but no Seil.
Seil DAO plays an important role in the decision making of the Seil ecosystem. Community members can use their xSeil balance as a governance token to make proposals and vote. After the Seil DAO platform is established, community users can let their voice in terms of the protocol development be heard in a more straightforward way. There will also be periodic voting for the allocation of mining rewards and other incentivization.
A higher xSeil balance stands for higher voting power. When determining a user's voting power, only the amount of xSeil holdings in the user's wallet will be taken into account. Any xSeil in a vesting duration of the redemption process will not be included in the calculation.
(2) Farm Boosting
Users can use xSeil to boost their farming yields of their selected pools. The maximum boosting multiplier for each pool could be different, but by default the maximum multiplier will be set as x2. Not all pools accept farm boosting.
At the early stage, pools available for boosting will be nominated by the founding contributors, but in the future, this will be determined by the community through the DAO voting.
(3) Launchpad participation
xSeil balance will be considered as a whitelist requirement or used for calculating a user's buyable quota for a launchpool in Seil launchpad. xSeil in a vesting duration also counts for the weight calculation of launchpad-related activities.
Based on the token model, Seil has several incentivization programs in place to allow those users with stronger engagement to earn extra rewards in addition to the basic fees and liquidity mining reward. These programs can all be used as modular contracts, which can be offered to project owners for public use in the near future. From Seil, extra rewards will be distributed in xSeil, which can be obtained in the following ways:
(1) Liquidity Lockup
Loyal liquidity providers for certain liquidity pools are eligible to earn additional rewards in xSeil. By locking liquidity for different durations (eg. 15 days, 1 month, 3 months), a liquidity provider can enjoy a particular reward tier. A longer lockup duration reflects a higher multiplier when calculating extra rewards. Corresponding xSeil amounts will be rewarded additionally according to their earnings via the base liquidity mining.
(2) LP Leaderboard
Active liquidity providers have more opportunities to earn extra rewards. For certain liquidity pools, an LP leaderboard will be updated periodically for all liquidity positions within these pools. Corresponding xSeil rewards will be distributed to a limited number of leading positions for every epoch.