Dear community users:
As the value representative of the FCoin, FT owns a permanent right to participate in revenue distribution (see revenue distribution announcement) and community governance (see FCoin Strategic Upgrade Announcement).
The FT issuance mechanism has tended to be stable along with the development (see the FCoin Strategic Upgrade Announcement). In order further protect the interests of FT holders, FCoin will launch an asset compensation plan for its long-term holders based on the current market situation:
I. Warrants FT1908 (delivered in August 2019)
FCoin will launch a new warrant FT1908, which will be issued in a 1:1 ratio with FT through the long-term compensation plan. The FT will be delivered at a 1:1 ratio as soon as it expired, and FT1908 will no long listed and traded in the secondary market.
II. The description of the asset compensation mechanism
1. Define FT/ETH=0.0003 as the asset compensation benchmark price (FT launch price is 0.000025ETH for reference).
2. The compensation shares will be distributed to FT long-term holders on a monthly basis, and in a matter of FT1908 in 1:1 ratio. Starting from August 2018, If the monthly average price of FT/ETH is lower than compensation base price, the compensation plan will be activated:
Monthly FT1908 compensation share= (compensation base price - FT/ETH average monthly price) / compensation base price * Monthly FT amount of the user.
The user's monthly FT holding amount is calculated as: A snapshot of the user's FT holdings for all the hour points (GMT+8, the same below) for each day, taking the minimum value of all the hourly snapshots in the month. The first full snapshot time is 0:00 on August 4, 2018.
3. The compensation of FT long-term holders is calculated on a monthly basis, and will be distributed before the 5th of the following month. The first snapshot time is 0:00 on August 4, 2018, and the first batch of compensation -FT1908 will be issued before September 5, 2018.
4. The frozen FT, including the “defrosting and locking” part of FT, will not participate in the FT long-term holder compensation plan.
5. If circulation of FT reaches the upper limit of 10 billion during the process (based on the daily assessment), the FT long-term holder compensation plan will be automatically terminated and community users will be informed by announcement.
6.We will automatically issue the FT1908 to eligible community users, and users do not need to apply.
III. The description of the value of FT1908
1. FT1908 is a future FT conversion warrant issued by the Long-term Compensation Plan, which will be officially delivered at 0:00 (GMT+8) on August 3, 2019. It can also be simply understood as the future FT being delivered at the agreed time after issuance.
2. The value of the FT1908 consists of two parts, one is the net value of the FT on the delivery date, the other is the accumulated dividend (FT) locked in the FT1908.
IV. Explanation of the FT long-term compensation plan
The core of this mechanism is:
Before the completion of the full release of the FT, when the FT/ETH monthly average price is lower than the compensation base price (0.0003ETH), future FT (for example FT1908) will be distributed to FT holders (excluding the pre-issued and locked FT) on the agreed delivery time.
The benefits for FT long-term holders when this compensation plan launched:
1.FT's long-term holders will reduce the asset losses (Priced in ETH, without including all revenue distribution during this period) suffered when the FT price is lower than the compensation base price before the FT is fully issued.
2.The newly issued FT locked in the FT1908 warrant will also accumulate revenue distribution and be allocated to the FT1908 holder on the due delivery date. That is to say, the price of FT1908 itself during delivery date will be increased over the time.
3.Those FT besides community rewards within the total issuance, which is the pre-issued and synchronized unlocking part described in the white paper, will not participated in this compensation plan.
August 3, 2018