Redemption rate
What everyone needs to know
The redemption rate determines what proportion of treasury assets can be reclaimed by a token holder by redeeming their tokens.
By default, all treasury assets that are considered overflow can be reclaimed by token holders. This can be modified using data source extensions.
A project's redemption rate and extensions can be reconfigured each funding cycle.
A redemption rate of 100% is linear, meaning a holder with 1% of the token supply can redeem all of their tokens for 1% of available treasury assets.
A redemption rate of
x
% wherex
< 100% will leave some assets in the treasury to share between those who wait longer to redeem. The smaller thex
, the fewer assets can be reclaimed.A project can set a different redemption rate that takes effect only when the project's current funding cycle has an active ballot.
What you'll want to know if you're building
A redemption rate can be specified in a funding cycle through the
SNOWController.launchProjectFor(...)
orSNOWController.reconfigureFundingCyclesOf(...)
transactions.A ballot redemption rate can be specified in a funding cycle through the
CSNOWController.launchProjectFor(...)
orCSNOWController.reconfigureFundingCyclesOf(...)
transactions, which will override the standard redemption rate if there is currently a reconfiguration ballot active.
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