🌱What are Seed tokens?

What Seed tokens are, how they work, and how they derive value.

Seed tokens are digital assets that represent early contributions to research projects, providing both funding for the project and exclusive access to discussions with project contributors.

What are Seed tokens?

Seed tokens are cryptographic tokens generated on Base, an Ethereum Layer 2 blockchain. Each Seed token instance is created for each project on Catalyst. Project creators, or 'Sourcers', initiate a new instance of Seed tokens when they launch a fundraising campaign.

Explain like I'm five

Imagine a research project is like going on an airplane trip. Seed tokens are like boarding passes that reserve your seat. Before the trip can start, a few items are needed: a team to do the research (the plane's crew), a project lead (the captain), funding (jet fuel), and a place to work (like the airplane itself). When these elements are ready, Seed tokens ensure you have an actual seat (IP Token) in the project’s journey towards its research objectives.

What do seed tokens do?

  • Grant Access to Discussions: Seed tokens provide exclusive access to private chats and forums dedicated to specific projects.

  • Enable Governance: Seed token holders can influence project decisions, including the terms of funding and selecting the project execution team.

  • Reserve IP Tokens: If the project is successfully tokenized, Seed token holders can swap their Seed tokens for IP Tokens, which grant direct IP governance rights.

  • Signal Market Interest: The trading and value of Seed tokens reflect real-time market interest and viability of projects.

  • Facilitate Liquidity and Trading: Seed tokens are always exchangeable, providing continuous liquidity that enables backers to reallocate their contributions.

How is the price of a project's Seed tokens determined?

When a project is created on Catalyst, an instance of Seed tokens is created with it. The first 100 Seed tokens, representing .1% of the total potential supply, are allocated (pre-minted) to the Sourcer. Thereafter, Seed tokens are available for purchase via a bonding curve mechanism, where the price of tokens increases linearly with each purchase. This dynamic pricing is determined by a linear bonding curve using native ETH as currency. Notably, 95% of each contribution directly supports the project funding, with the remaining 5% temporarily held as escrow fees. When a project is successfully funded, the bonding curve market is closed, but Seed token holders become enabled to trade with each other.

For more info on Seed token pricing dynamics, please see this section.

As a researcher, why are seed tokens useful to me?

  • Accelerated Funding: Obtain research funds rapidly, avoiding the lengthy processes typical of traditional funding sources.

  • Expert Collaboration: Gain access to a network of biotech experts and data scientists who can help refine research proposals and methodologies.

  • Project Promotion: Leverage Sourcers who manage fundraising, allowing you to focus on research while still achieving funding goals.

  • Community Engagement: Engage with a community that is financially and intellectually committed to your project's success.

  • Governance Control: Exercise governance over your project, making key decisions about the direction and use of funds.

As a reviewer, why are seed tokens useful to me?

  • Earn Rewards: Receive tokens as compensation for reviewing and contributing to project improvements, which can be held or traded. If the project is successfully tokenized, you receive IP Tokens in exchange for Seed Tokens.

  • Influence Projects: Use tokens to exercise governance power, influencing project direction and implementation.

  • Access Cutting-Edge Research: Engage directly with the latest research and maintain expertise at the forefront of your field.

  • Expand Professional Network: Collaborate with leading scientists and biotech industry experts, enhancing your professional standing and influence.

As a funder, why are seed tokens useful to me?

  • Support Breakthrough Research: Directly fund research projects in areas you are passionate about and see your contributions lead to scientific advancements.

  • Exclusive Insights: Gain early and exclusive access to research outcomes and discussions, staying informed about the projects you support.

  • Governance Rights: Participate in the governance of projects, including decisions on fund allocation and project direction.

  • Reserve IP Tokens: If the project is successfully tokenized, you receive IP Tokens.

  • Liquidity: Trade your tokens on the market, providing flexibility to manage your project portfolio.

  • Market Signals: Benefit from market signals that indicate the popularity and potential success of funded projects.

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