Focus on economic policy and incentives aligned with long-term growth and transparency
August 1, 2019
The Algorand Foundation’s mission is to promote the long-term success of the public blockchain network and the Algo token. By introducing an early redemption option, we are giving auction participants an early optional opportunity to redeem the refund above the current value of the Algo. In response to feedback from the market, the foundation is seeking to strengthen the long-term viability and fairness within the Algo market for remaining participants who are taking a longer-term view and who wish to contribute to building out the Algorand platform.
Accordingly, as an alternative to the original 90% refund option available to auction buyers on the first anniversary of the first auction, the foundation will provide an optional Early Redemption Option in an effort to take these specific auction tokens out of circulating supply. In this option, a user who bought #X Algos at the first auction can return all #X of them to the foundation in this coming week and receive 85% (recognizing the effect of the time value of money) of the price paid to acquire them.
In order to meet eligibility requirements, participants will have seven days to return all auction Algos to their designated wallet starting at 8am SGT on August 2nd, 2019 and ending at midnight SGT on August 9th, 2019. The redemption window will open on August 23rd and will provide an 85% refund of the clearing price at the first auction. Refunds will be dispersed via the same currency the auction account was funded by (USD, BTC, ETH).
Early Redemption Window Details
Early Redemption Window Requirements
Next Steps to Participate in Early Redemption:
Original Refund Policy
Participants may retain the original Refund Policy of 90%. This means that auction participants can continue to retain their Algos and have the option of participating in the original refund policy in June 2020, where they will have a one-week window to exercise the 90% refund of the June 2019 auction purchase price. Details on exercising this option will be available approaching June 2020.
About the Algorand Foundation
The Algorand Foundation is providing the trusted infrastructure needed to support the growth of a borderless economy. With research led by Dr. Tal Rabin, a 2018 Forbes World Top 50 Women in Tech, the Algorand Foundation is incorporated in the Republic of Singapore.
For more information, visit algorand.foundation.
Points of clarification can be found below. For more specific questions, please reach out to [email protected]
What exact wallet should Algos be put back into?
You must send Algos back to the same address which you received Algos to after your successful auction bid. If you are unsure of the proper address, you should have received an email from the Algorand Foundation that contains the number of Algos you received in total and the address which received them. If you have not and need further clarification on this, please email [email protected]
Can you return Algos bought at market instead of the ones acquired at auction, if you were an auction participant?
Yes. The refund policy does not require returning the same Algos that were received from the auction.
In what format and currency will the 85% be returned to me in?
As detailed in the terms and conditions that were agreed to at the auction, the refund is denominated in USD. You will get 85% of the USD clearing price per Algo deposited into your auctions account (also known as the USD wallet). When you ask to withdraw the USD from your USD wallet, it will be converted to your original currency automatically.
If I paid in ETH or BTC what are the conversion fees that are subtracted from the refund when the Foundation converts USD back into ETH or BTC?
The Foundation uses a 3rd party to do the conversion which carries a flat fee of 0.25%
The exchange rate is set relative to the spot price at https://tradeblock.com/markets/index as of the moment in time that a user requests such rate:
What happens if I put more Algos in my auction wallet than I qualify to receive a refund on? Ie, more Algos than I received at Auction?
You can have as many Algos in your Algorand wallet as you please. The amount of Algos in your auction wallet must be equal to or greater than what you received from the successful auction bid in order to be eligible for the early redemption.
At a future date, and to participate in the early redemption, you will be asked to send the exact amount of Algos you received at auction to address that will be provided. If there are any overages sent, they will be returned back.