Participate · Index Semilla
Index Semilla, a share of the whole network.
Understand the SEM: what it is, how its value is formed, why it can gain value, and what it does not promise.
In short
The Index Semilla is the SEM: the system's main asset. Holding SEM means holding a share of what the whole network of organizations builds, rather than betting on a single one.
First, a few words
- A digital unit
- a digital share recorded in a public ledger, the blockchain. No one can alter it in secret, and anyone can verify it.
- A contract
- a program published on the blockchain, which always applies the same rules. The SEM contract lives on Avalanche.
- A wallet
- the place where your SEM are kept, with a key that only you hold, or that Semilla keeps for you.
- An index
- a basket. Just as a stock index brings together several companies, the Index Semilla brings together the value of all the funded organizations.
Where the value comes from
When you buy SEM, your money does not sit idle: it funds real organizations that produce, sell and employ. When they prosper, a share of their profits returns to the system. It is this real prosperity, not speculation, that carries the SEM.
Where each purchase goes
| Share | Where it goes | Why |
|---|---|---|
| 70% | Investment | Fund the network's organizations. |
| 10% | Reserve | Handle the unexpected. |
| 10% | Momentum | Build and support the organizations. |
| 5% | Liquidity | Make it possible to buy and sell between members. |
| 5% | Rewards | Redistributed to existing holders (not to the buyer). |
Each Index purchase also sends 2% to the Foundation, a non-profit wallet. Exchanges between members pay no fees today.
Why the SEM can gain value: contraction
The number of SEM can never exceed 108,000,000. And it is designed to decrease: with the final SEM, half of the profits buy back SEM and remove them from circulation for good; the other half funds new organizations.
It is the opposite of a currency printed without end, which loses its value. The buyback is a rule executed by the contract, verifiable by anyone, and it has a limit: the buyback fund never exceeds the value of the SEM in circulation.
Today, during Genesis
- The SEM is issued in phases, at a price set in advance for each phase. The price only rises from one phase to the next.
- Profits are reinvested in the organizations: the buyback begins with the final SEM, planned for June 2027.
- The Genesis ledger will migrate to the final SEM: what you hold comes with you.
Holding your SEM
- Yourself, in your own wallet: you keep the key, and you alone are responsible.
- Or Hosting Semilla: Semilla keeps your SEM for you, in a wallet dedicated to your account. This service has fees, presented to members.
- In both cases, your identity is verified before any acquisition: Semilla is not an anonymous market.
- Reselling: there is a member-to-member market, reserved for members who hold enough SEM.
What it does not promise
The Index promises no return, on any date. Its value follows the real prosperity of the organizations, in either direction. Read Risks and taxes before any decision. Entry is by invitation from a member.