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% where x < 100% will leave some assets in the treasury to share between those who wait longer to redeem. The smaller the x, 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(...) or SNOWController.reconfigureFundingCyclesOf(...) transactions.
A ballot redemption rate can be specified in a funding cycle through the CSNOWController.launchProjectFor(...) or CSNOWController.reconfigureFundingCyclesOf(...) transactions, which will override the standard redemption rate if there is currently a reconfiguration ballot active.