Solana Protocol Seasons Levies 10% Tax on Trades to Reward Holders

Seasons is a Solana protocol that aims to provide stability in an increasingly volatile crypto market. According to its CEO, Andrey Didovskiy, 'volatility has always killed people' in crypto.

The protocol achieves this through a mechanism called the Transactional Transfer Tax, which absorbs a 10% fee from all trading activity and redistributes it among node owners who hold over 10,000 tokens. This threshold is set at around $2,500 at recent prices for SEAS, the token used in the protocol.

Didovskiy explained that this mechanism is not new, but rather a variation of token designs from the last cycle, which were built to grow trading volume and increase market value through inflationary models. However, Seasons has adapted this approach by using yield-bearing stablecoins and deploying reserves into lending and liquidity strategies.

The protocol's numbers are modest, with $242,624 distributed since launch, and an average annual percentage yield of about 12.56%. The payouts arrive in gold, bitcoin, and dollars, rather than more of the protocol's own token, which is what turned most reflection tokens into circular machines.