It has been an eventful few months for the cryptocurrency market.
The turbulent waters of the broader economy have led to depressed values across the board — Bitcoin (CRYPTO: BTC) is down roughly 50% from just six months ago. Investors are wary of what is to come, and many have parked large portions of their portfolios in cash.
Amid this fear, however, many positive signs and reasons for hope remain. Perhaps one of the most momentous events in crypto’s short history — the merging of Ethereum’s (CRYPTO: ETH) testnet and mainnet — happened just a few weeks ago. ETH’s transition from proof of work to proof of stake was a hotly anticipated progression for the token and one that was delayed many times. Its success was a beacon of hope in the shaky market.
Another project that has enjoyed some success in recent months is Seasonal Tokens. The project's underlying thesis seems to have been validated thus far with the passing of two important milestones.
The project contains four tokens — Summer (CRYPTO: SUMMER), Autumn (CRYPTO: AUTUMN), Winter (CRYPTO: WINTER) and Spring (CRYPTO: SPRING). Each season is produced through proof-of-work mining at variable rates on a set schedule. The intention is to create a virtuous cycle in which traders can continuously build their portfolios through the changes in supply and demand.
As one token, say SPRING, is mined at the fastest rate, it is the most plentiful and therefore, the thinking goes, it will be the cheapest. Then the rate of production will shift and SPRING’s value should rise in relation to the other tokens as it becomes scarcer.
However, this is just a theory. Or at least it was until the project went through its first major mining adjustment. Now the results are in.
And it seems as though it works.
On June 5, SPRING’s mining difficulty was doubled. Its rate of production went from 16.8 tokens per minute to 8.4 tokens per minute. Up to this point, SPRING was the cheapest of the four tokens, but in the months since, because of the reduced supply, SPRING is now the most valuable of the four tokens.
SUMMER took SPRING’s place after June 5 as the easiest to produce, and although SPRING had built up a large lead in total number of tokens in circulation, SUMMER has now surpassed it with 12 million tokens in circulation. It would seem the theory has been proven.
If you are interested in learning more about the project, check out https://seasonaltokens.org/.
Featured photo by m. on Unsplash
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