Hello dear AZ FundChain community,
Yesterday, STEX has activated the trade of AZT. Today, we want to announce you the first ever upcoming AZT buyback and provide more details on the new the Dutch auction model we will implement.
Let’s start with the buyback. As our dedicated followers already know, our application was and it still is in closed beta for over a month. We have approached several local money organizers before the closed beta. They have agreed to test our application in return with a reduced market fee. We have so far had 13 successful completed circles which generated roughly $360 USD revenue for the AZ FundChain liquidity pool.
This $360 USD will be used to manually buyback AZT tokens through STEX in a 1 week period. Every day, starting on the 14th of June Friday, we will be buying back AZT through sell orders around 1 PM UTC. We will document each buyback through daily screenshots.
STEX has released the unsold AZT. We will be burning this AZT to an unusable address, which we will address in our next week’s post with details. The AZT bought back from the market will be sent to liquidity pool at a $1 rate. This means that even though we might buyback tokens below $1, we will burn any excess tokens. If we buy 100 tokens for $80, we will buy 20 AZT, and regard the remaining 80 AZT at $1 value. We will send this 80 AZT back to liquidity pool.
What is the Dutch auction model and why do we need it?
As you know, we were planning to sell 2,500,000 AZT through the sale. This would, in our projection, be enough for the circulating supply to buyback when our application reaches mainstream use. However, with a low circulating supply, we might get out of circulating supply and this might create a surplus beyond repair. Thus, the liquidity smart contract with gradually increase the buyback price if the demand isn’t met for a certain time limit.
Here is an example:
The buyback will start with $1, buying back 1,000 AZT to fill the liquidity pool.
If the liquidity pool doesn’t receive 1,000 AZT in 2 hours, it will increase the buyback price to $1,2. This will make the liquidity pool by 20% less AZT but it will be paying a lot more price per token to create demand.
Every 2 hours, the buyback price will increase by 20%.
We will explain this in a dedicated post later on when the revenue is substantially ready for automated buybacks.
Thank you for reading and keep following us for the upcoming application video soon where we show off how cool AZ FundChain is!
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