The LQ emissions for the Seed Round have been ongoing over the past 24 months, with a steady monthly release of approximately 17,000 LQ. These emissions were seen as “normal” and did not result in significant market impact. Notably, they did not lead to sustained sell pressure, as many recipients chose to hold their tokens. Those who intended to sell had largely done so already, with much of that supply effectively bought back in September 2024. (see here)
Today, the focus has shifted to staking rewards, which—according to current forecasts—are expected to surpass 17,000 LQ per month in the near future.
A strong LQ price is clearly preferable to a weak one. As you rightly pointed out, the combination of reduced short-term staking rewards alongside the end of Seed Round emissions is a positive development for LQ holders, helping to reduce circulating supply pressure and supporting the long-term health of the token.