From CBY to LC to SEED: The Next Step for the Sproutly Ecosystem
Sproutly is entering a new phase. With the upcoming Sproutly launch, together with RWA Inc. as a highly influential strategic partner, alongside ApeBond and Hydrex, we are also preparing an important evolution of our token ecosystem.
This starts with LC, a new token that will completely replace CBY, followed by a gradual transition from LC into SEED. Instead of converting the entire existing CBY supply into SEED at once, the transition will take place in phases, giving LC real utility along the way while gradually introducing SEED into circulation.
First: What is LC?
LC is the successor to CBY. Every wallet holding CBY on Ethereum, BASE or Polygon will automatically receive LC through an airdrop. No manual swap is required.
Following the migration, CBY will be fully retired across the ecosystem, including CBY currently used on the Sproutly Chain. LC will become tradable on Sproutly DEX.
LC is not simply a temporary migration token. During its lifecycle, holders will be able to use it for SEED staking, COMPOST staking and Tree Staking, while eventually retaining the option to transition their LC into SEED.
Phase 1: LC Staking
Phase 1 lasts 6 months and has a total reward pool of 250,000 SEED. Users can join during the staking period, with rewards distributed continuously based on each participant's share of the total LC staked.
There is no fixed APY. If fewer LC are staked, each participating LC receives a larger share of the reward pool. If 100% of all LC were staked throughout Phase 1, the annualized reward rate would be approximately 5.5%. In practice, we consider 100% participation unlikely, meaning the effective reward rate could be higher.
After Phase 1, holders can either continue staking during Phase 2 or begin their LC → SEED transition, subject to the optional market extension described below.
Exclusive LC Holder SEED Sale
LC holders will also receive preferential access to the SEED sale.
Public sale price: $0.30 per SEED
LC holder price: $0.20 per SEED
Every eligible LC gives its holder the right to purchase up to 1 SEED at the preferential price. LC is not spent or burned when determining this allocation.
Eligible LC may include LC that is staked, held in a wallet or acquired through Sproutly DEX during the eligibility period. Eligibility follows the LC, not the wallet. Transferring LC between wallets does not create a new allocation, preventing the same LC from being reused multiple times.
A maximum of 500,000 SEED will be available through the LC Holder Sale. Purchased SEED will be locked for 14 days. After that, 25% becomes claimable, while the remaining 75% vests linearly over the following three months.
Phase 2: Continue Staking or Transition to SEED
Holders who continue staking after Phase 1 can participate for another 6 months, with a second reward pool of 250,000 SEED. This brings the total Phase 1 and Phase 2 staking rewards to 500,000 SEED.
Participation is entirely optional. LC will be freely tradable on Sproutly DEX from day one, meaning holders can also choose to sell their LC instead of staking or eventually converting it into SEED. Likewise, users who want additional LC can acquire it through the DEX.
This may make Phase 2 particularly interesting. Some LC will remain liquid or be sold, some may be used to earn COMPOST, and some holders may begin their LC → SEED conversion. As converted LC is permanently burned, the amount of LC competing for the 250,000 SEED Phase 2 reward pool could decrease, potentially increasing the relative rewards for those who continue staking.
The Final LC → SEED Conversion
The final conversion ratio is simple:
1 LC → 1 SEED
When a holder initiates the conversion, the corresponding LC is permanently burned and an equivalent amount of SEED is allocated.
That SEED then enters a 12-month linear vesting period.
Importantly, vesting starts individually when each holder chooses to convert. There is no single date on which millions of converted SEED become available at once. Different conversion dates create different vesting schedules, allowing SEED to enter circulation gradually.
Under normal market conditions, a holder who converts directly after Phase 1 could therefore be fully vested approximately 18 months after Phase 1 begins. A holder who completes Phase 2 first could be fully vested approximately 24 months after Phase 1 begins.
Optional Extended Staking Phase
Sproutly reserves the option to introduce one additional 6-month staking phase, backed by another 250,000 SEED reward pool.
This extension is specifically intended as a safeguard against prolonged unfavorable market conditions. We would only consider activating it if the current bear market continues and market conditions make a successful SEED sale and broader launch unrealistic.
Such a scenario would not be positive for Sproutly or for LC holders. If market conditions are too weak to support a successful SEED launch, it would also be a poor environment in which to begin a large-scale LC → SEED transition. We want to move forward as soon as possible and do not intend to delay the transition under normal market conditions.
If the extension is activated, the opening of the LC → SEED conversion will be postponed by six months for all LC holders. During that period, holders will have another opportunity to stake LC and earn a share of the additional 250,000 SEED.
This option can only be used once. If additional time is genuinely required, we believe rewarding the LC community for that period is fairer than simply asking holders to wait.
Why a Phased Transition?
There is a straightforward reason why we are not converting all CBY directly into SEED: we do not want the entire existing CBY supply to turn into liquid SEED at the same time.
A direct 1:1 conversion could introduce millions of SEED into circulation within a relatively short period. A gradual transition is healthier for SEED and for the wider Sproutly ecosystem.
At the same time, we don't want that transition period to become a waiting period for existing holders. LC therefore remains an active ecosystem token with opportunities to earn SEED and COMPOST, participate in Tree Staking, trade on Sproutly DEX, and access SEED at a preferential price.
The objective is simple: transition the existing CBY community into SEED gradually, while making the journey from CBY → LC → SEED as useful and rewarding as possible.