6.2 Fair and Continuous Seed Conversion

Seeds are freely tradable, exactly like Carrots. To ensure a fair redemption of Seeds into Carrots as projects progress, the Seed smart contract ensures that the relative amount of Seeds any holder can redeem does not exceed the overall progress of Carrot minting. This process functions even if these Seeds are traded, as the Seed smart contract keeps track and redistributes the initial pledge along with the Seed balance.

The redemption of Seeds into Carrots is done on-chain, as the minting of Carrots is diverted to the Seed smart contract until the Seed supply is completely covered by minted Carrots. This transparent approach alleviates the need for complex accounting and prevents disputes.