🌸$SEED Redemption & Vesting
Overview
$SEED holders can redeem $Bonsai at a 10% discount by pairing tokens and completing a vesting cycle. This mechanism powers Bonsai’s buyback flywheel — a continuous loop that recycles ETH into Bonsai value.
How Vesting Works
Vesting is the process that converts your $SEED into the right to buy discounted $Bonsai.
Pair your tokens: → 1 $SEED + 1 $Bonsai
Start vesting: → Begin a 1-week vesting period.
Redeem: → After vesting, you can buy the same amount of $Bonsai using ETH, at a 10% discount. You must complete the purchase within 4 weeks after vesting or the redemption expires.
ETH is used for $Bonsai Buybacks.
Redemptions are first-come, first-served and limited by the current Redemption Pool supply.
The Redemption Pool
A capped on-chain pool of $Bonsai tokens available for redemption.
Example:
5,000,000 $SEED can be redeemed against 5,000,000 $Bonsai
The 10% discount = 500,000 $Bonsai in value (≈ $1M if $Bonsai = $0.20)
Once the pool is exhausted, no further redemptions occur until the DAO refills the pool through governance.
The ETH Flywheel
Every redemption generates ETH inflow back to the DAO. Instead of sitting idle, this ETH fuels ongoing $Bonsai buybacks — strengthening price and value for all participants.
Flow Summary:
User redeems $SEED → buys $Bonsai with ETH
ETH returns to DAO treasury
The treasury uses ETH to buy back $Bonsai from open market
Buybacks tighten supply and reinforce staking yields
A self-sustaining loop that compounds with every redemption.
Dynamic Supply Control
The Redemption Pool is on-chain and capped, ensuring redemptions stay sustainable.
Pool replenishment and emission pacing are controlled by the Bonsai team.
This model protects both the price floor and the long-term redemption value of $SEED.
A Quiet Ecosystem Loop
This system aligns all Bonsai participants:
Vault users earn SEED for deposits
Redeemers inject ETH into the DAO
Buybacks reduce $Bonsai supply, and increase value of $Bonsai
Stakers earn from additional emissions
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