Lition Guaranteed Refund Parachute
The current crypto market is difficult climate for investors and at Lition, we are fully aware of this. Many contributors to previous ICO’s have been burned by projects that have made bold claims and promises yet have completely failed to deliver on such commitments, leading to a greatly reduced token price and restricted or non-existent liquidity.
Lition is fully confident that we can deliver on our promises. It is for this reason, Lition will be locking up a partial amount of collected funds in order to guarantee a refund for our contributors. We believe it is only fair that our contributors and long-term supporters should be able to reduce their risk and exposure of investment in the Lition project, should we not deliver on our roadmap and promises. In case we didn’t deliver, it’s just fair we pay the price.
Enough of the empty promises! We are literally putting our money where our mouth is!
What do we refund?
Prior to listing, Lition public sale participants can opt-in to our refund program. Should contributors choose the Refund program option, LITION tokens will be eligible for exchange into DAI (a USD based stable coin), pegged to 50% of the initially contributed value in USD, claimable six months after date of the TGE.
For example, should the token price fall to 0.025 USD, Lition will buy back the tokens for 50% of the ICO price after 6 months, i.e. 0.05 USD. This gives token holders the right to choose: If the ICO price rises, the token holder gains the full benefit. Should it fall, risk is minimized. Like a rocket with a parachute that only inflates when needed.
What do I need to do?
Every public sale participant will be eligible for the refund program based on the following critera:
- Contributors will need to decide between our HODL Highway or Refund Program. This is essentially a choice between receiving an additional bonus of up to 25% via the HODL Highway, or a reduced downside of 50% of initial investment dollar amount via the Refund Program. The decision is open after TGE and before exchange listing for a period of approximately one week (exact time to be announced).
- LITION tokens must then stay in the wallet that was used to participate in the Lition token sale for at least six months. They can be moved away at any time but this will result in an according loss of the program eligiblity.
- After six months, you can then - if you want to - transfer the tokens to a smart contract and in exchange receive the respective amount of DAI.
We have intentionally created such a framework in order to incentivize our longer-term token holders over those who are looking for short-term profit. As a contributor, there is an expectation that an asset will not depreciate in value, however crypto has shown time and time again that this is a distinct reality for some crypto projects. It is for this reason we think that it is only fair to allow real Lition believers to make use of such an exit option.
Why are we giving back 50% and not 100%? Even in a scenario in which contributors use the refund option, we want to ensure that our mission — bringing blockchain to mainstream use — can still be achieved. Therefore, we will retain the other half of funds to be used in building the Lition project and ecosystem.
How are those funds being stored?
Lition will convert sufficient funds to DAI at the end of the TGE and transfer these DAI tokens into a publicly visible Ethererum address. For the first week after TGE, token holders can elect into the Refund program by executing a call to our smart contract, or do nothing and stay eligible for the HODL Highway bonus.
After these two weeks, Lition will initiate the transfer of the respective DAI amount onto a smart contract which will ensure that the refund is being released correctly six months later in exchange for the original LITION tokens. The source code of the lockup smart contract and its address will be publicly released, so the crypto community can verify the code and the funding amount of our refund program.
Let’s hope for the sake of all us that it will never come that far!