On the 30th of January this year, we released two community updates: one from Freeway, the other from Freeway co-CEO Graham Doggart.
The Freeway update explained why Freeway has paused Supercharger simulation buybacks. The update from Graham explained the progress we had made already in bringing Freeway back to a position whereby we intend to resume Supercharger buybacks — including the addition of a $70m credit line to trade with at the brokerage.
This update will explain the additional progress we have made since then and, having listened to our community, includes a commitment to regular monthly updates from here onwards.
Supercharger Simulation Rewards Rates Set To Reduce
To help accelerate the journey to resuming full Supercharger simulation buybacks, we are reducing the reward rates offered on fiat & crypto denominated Superchargers.
New Supercharger simulation reward rates will be as follows:
Maximum Fiat-denominated Supercharger reward rate: 21.5%
Maximum Crypto-denominated Supercharger reward rate: 15%
The reduction in reward rates will go into effect on or around 30th March 2023.
To maintain the maximum reward rate of 21.5%, users will still need to hold 5% of the value of their Supercharger simulation balances in Freeway Token (FWT) as per the platform FWT minimum value of 0.06c per token.
Freeway Token Staking Rewards Earned As Fiat-Denominated Supercharger Simulations Only
As with the decision to reduce Supercharger simulation reward rates, the decision to issue Freeway Token (FWT) staking rewards in fiat-denominated Supercharger simulations only is designed to assist with the process of resuming Supercharger simulation buybacks.
The change will come into effect on or around 30th March 2023. At which point FWT staking rewards can be earned in the following Superchargers simulations:
- USD-denominated Supercharger
- GBP-denominated Supercharger
- EUR-denominated Supercharger
- CAD-denominated Supercharger
- AUD-denominated Supercharger
A Financial Update
Between October and the 30th January, Freeway’s FX algorithms performed as expected, increasing Freeway’s assets in trade from $36.8m to $55.1m.
That performance, alongside early algo licensees joining the pilot, led to the negotiation of a tradable credit line of $70m, bringing the total assets in accounts available to trade with to $125.1m.
The addition of such a large amount of capital requires a period of several weeks to ‘warm up’ properly for normal use in trade.
Four weeks following commencing the deployment, the brokerage reported for February 28th, 2023, that account assets available for trade had increased to $128.25m.
As part of committing to regular monthly updates moving forward, we intend to include similar updates as this one on Freeway’s corporate finances so you can follow along with our broader mission and journey which includes plans to resume full Supercharger simulation buybacks.
As you may remember, the growth in the accounts — and the addition of the credit line combined with the planned future product and service launches — have reduced the projected timeline for when full buybacks may resume from around 2.5 years to 9–12 months starting from the beginning of this year.
To support that goal, a pilot FX algo licensing program was carried out in February and we are finalising arrangements in order that the program may open up more widely to those who are interested very soon.
You can expect an algo-specific update at that time.
The Freeway Team
