Prewater your soil to like 0.5% runoff before sowing seed. You’ll never get damping. 1 gallon of water for every 5 gallons of mix (7 #1 pots)
The top dries a bit by the time seeds pop (2-7 days, average 3). No water needed for roughly 2 weeks. If you see any white fuzz, your soil wasn’t baked well enough, but don’t worry, brush the fuzz down and it will get the hint not to eat your seedlings. Prewatering will cook any left over food you may have missed due to poor stirring and rid the pot of any heat before roots develop. I’ve been absolutely shocked by how many growers have incomplete compost in their pots that starts composting when they water their seedlings.