The algorithm of of BitFlip debt buyout has been set
The percentage of BitFlip debt tokens buyout from token holders of the total amount of funds allocated for repayment at each stage of the buyout will depend from 2 factors:
- the percentage of BitFlip token user's ownership of the total debt towards this BitFlip token - coefficient 1 (C1);
- the percentage of the user's trading activity (in BTC equivalent) of the total trading activity of all BitFlip token holders (in BTC equivalent) - coefficient 2 (c2).
The buyout procedure:1. The special page will contain the following statistics:
1.1. the total amount of debt for each BitFlip token;
1.2. the amount of debt redeemed for each BitFlip token, as well as the percentage of the total amount of debt (paragraph 1.1.);
1.3. the total amount of debt of each user for each BitFlip token (you need to log in);
1.4. the amount of debt redeemed by each user for each BitFlip token, as well as the percentage of the total amount of the user's debt (paragraph 1.3.);
1.5. Debt buyout history which includes the buyout date, the currency and the amount sent for buyout in a given period.
2. While calculating the percentage of funds (C1) that will be credited to each user from the amount sent for buyout in a given period, only free tokens (not involved in trading at the buyout moment) of the user are taken into account.
Example: the total amount of debt on BTCbf tokens not involved in trade is 100 BTC. Client A has 5 BTCbf free, which is 5% of the total amount of debt (C1 = 0.05), client B has1 BTCbf (C1 = 0.01), client C - 10 BTCbf (0.1), etc.
3. When calculating C2, the percentage of the total trading volume (in BTC) of BitFlip tokens owner of to the total trading volume (in BTC) of all owners of any BitFlip token is counted for the period between the payments of debt obligations.
Example: for a certain reporting period, all customers owning BitFlip tokens performed a 100 BTC trading volume. From this amount, client A made a 10 BTC volume (C2 = 0.1), client B - 30 BTC (C2 = 0.3), client C - 1 BTC (C2 = 0.01), etc.
4. The funds send for the buyout of debt tokens will be divided into two parts of 50%. The first half will be divided according to the coefficient 1 (C1), the second - according to the coefficient 2 (C2).
Example: 4 BTC are decided to be sent for buying out BitFlip tokens. Clent A has the coefficients 0.05 (C1) and 0.1 (C2), respectively, client B has 0.01 (C1) and 0.3 (C2), client C has 0.1 (C1) and 0.01 (C2).
Therefore, 4 BTC * 0.5 * C1 + 4 BTC * 0.5 * C2 = 4 BTC * 0.5 * 0.05 + 4 BTC * 0.5 * 0.1 = 0.3 BTC will be bought out from client A, 4 BTC * 0.5 * 0.01 + 4 BTC * 0.5 * 0.3 = 0.62 BTC from client B, 4 BTC * 0.5 * 0.1 + 4 BTC * 0.5 * 0.01 = 0.22 BTC from client C, etc.
As you can see, Client C with the largest share of debt (C1 = 0.1) received the smallest share of the buyout while he practically did not make a trading volume (C2 = 0.01). And vice versa: Client B received the payout 3 times bigger than Client C since he has a larger volume (C2 = 0.3).
5. The buyout of tokens takes place automatically and is recorded in the wallet financial history with two operations: the write-off of the token with the prefix “bf” from the wallet and the deposit of the token without the prefix “bf”.
6. The date of the next buyout is determined by the BITEXBOOK administration that notifies the holders of BitFlip tokens within 3 working days by e-mail, as well as through the news publication on the site.
