$GVDT - Token Redemptions / Buybacks

This page details GOV.DAOs Token Redemption Mechanism

FORWARD NOTE:

THIS PAGE DETAILS A TOKEN REDEMPTION MECHANISM WHICH IS PROPOSED AND SUBJECT TO CHANGE FOLLOWING FEEDBACK FROM ALL MEMBERS AND INTERESTED PARTICIPANTS. THE PROPOSED TOKEN REDEMPTION MECHANISM HAS BEEN DESIGNED TO ADDRESS ANY LIQUIDITY CONCERNS THAT MAY ARISE ON DETERMINATION OF THE $GVDT TOKEN CLASSIFICATION AND REGULATORY TREATMENT. WHILST IT IS THE INTENTION THAT $GVDT WILL BE LISTED FOR TRADING, THERE IS NO GUARANTEE THAT IT WILL BE LISTED ON CRYPTO EXCHANGES, NOR THAT THERE WILL BE A LIQUID MARKET FOR $GVDT. THEREFORE, THIS TOKEN REDEMPTION MECHANISM IS PROPOSED AS AN ALTERNATIVE LIQUIDITY OPTION FOR $GVDT TOKEN HOLDERS.

Token Redemptions / Buybacks

To ensure a constant supply of $GVDT tokens for rewards, and to give $GVDT token holders additional liquidity options, 5% of rewards generated by GOV.DAO´s activities will be allocated, (in USDC or other stablecoin denomination) to a publicly viewable redemption smart contract where $GVDT holders will be able to redeem their tokens at a 5% APY to the issue price of $0.50, up to the available amount held in the redemption smart contract. Any amount held in the redemption smart contract in excess to the liability of $GVDT token redemptions will be used to buyback $GDVT tokens on the open market. The $GDVT token redemption mechanism will be available for a total period of 4 years from the date of the redemption smart contract deployment (at the sole discretion of GOV.DAO). After this period, the redemption smart contract will no longer be enforceable, and any subsequent redemption or buyback mechanisms will be agreed on and communicated to $GVDT token holders accordingly. Redeemed $GDVT tokens will be held by GOV.DAO in the reserve allocated for LGT reward distribution.