That
is a fundamental and excellent question about the FlexUp Economic Model and how
we ensure long-term value preservation and incentivize early and continuous
participation.
The
25% annual uprate in the FlexUp model is applied through a single token index for each Account that signs a FlexUp
Charter (designated as a “project”), which is shared by all
tokens in that project. This means the uprate is not calculated individually
for each participant in that project
(designated as an “associate” for that project). Instead, all tokens reference the
same evolving index, similar to how all shares in a company share the same
share price.
However,
each token keeps a record of the token index
(the “issue index”) on the date this token was
issued (the “issue day”). This issue index is important for two reasons:
- Determining how many
tokens someone receives
Example: If a contributor has a token commitment of 800 € and the token index
at issuance is 20 €/token, they receive 40 tokens.
- Setting the minimum
redemption value for redeemable tokens
The issue index is used to calculate the token’s minimum price at which
the project can exercise its option to buyback the token (the “redemption
price”). Note that this only applies for “redeemable tokens”.
In
summary:
- Each account that
signs a FlexUp Charter (a “project”) has a single token index and token uprate
why apply
equally to all tokens. The issue date matters only
for the issue index of each specific token, which determines
the number of tokens allocated and the minimum redemption price.
