How ZEPH’s buyback mechanism works
Buybacks on the ZEPH token will commence on Wednesday, October 31st, 2018.
Buybacks on ZEPH are also a key metric for our own business, Spark: we use this figure as a gauge to measure the value we are creating in the world as a company, and seek constantly to grow this number.
The successful commencement of the buyback mechanic for ZEPH is the fulfilment of part of the investment case for our initial coin offering in 2017. Unlike so many projects from the same period, we are proud to be not only delivering functional products, but also keeping our word to our supporters.
In the spirit of transparency, we are laying out the terms upon which buybacks of the ZEPH token will occur so that the market surrounding our token operates as efficiently as possible.
It is important to note that the specific amount of buy-backs for ZEPH will vary month to month, as we are partly dependent on market conditions to determine this. In principle, however, you can expect buybacks to be:
- Consistent: we plan to release buybacks at a monthly schedule.
- Fair: buy-back orders will be placed at market prices on Sparkdex, our own decentralised exchange, so that as many people have access as possible.
How much will be the buybacks be?
The amount used to fund buy-backs equates to 25% of all commissions earned through each of Spark’s products.
The volume used to calculate this funding comes from:
- Trading fees on Sparkdex, our decentralised exchange.
- Currency exchange for our business platform customers.
- Digital currency transactions from individual users through our mobile application.
During the launch period of Sparkdex, we will use 100% of commissions from the exchange for buybacks. At some point in the mid term, this will reduce back to the standard 25% of commissions as per the guideline above. We will notify the community of this as it happens.
Buybacks arising from listing fees for tokens and projects on Sparkdex (currently ~2.5mm ZEPH required as payment per listing) will be released on a case-by-case basis, as the listing process may miss the cut-off period for a particular month.
How will ZEPH buybacks be released into the market?
Buybacks of ZEPH will be placed on Sparkdex at 5pm Hong Kong time (GMT+8) on the last working day of each month.
The buybacks will be placed as a single order at market price on the relevant market in which the commissions are earned. For example, on Sparkdex, any commission earned on a market pair will be issued as a buyback on that market (ie, sparkdex.BTC, sparkdex.ETH and so on).
Commissions earned outside of Sparkdex (though our business platform or mobile application) will have their buyback issued through the sparkdex.BTC:ZEPH market.
How will buybacks be announced?
Buy-backs will be announced generally on all of Spark’s channels, with notifications of the order placement being posted on the ZEPH telegram channel, and the Sparkdex telegram channel and twitter account.