Starting in November 2019, we will buy back each week SHR tokens on the open market (i.e. exchanges on which the SHR token is listed). The Flowback operation will be done at a random time during the week.
If there is enough liquidity, SHR tokens will be bought through a single market order at the time of Flowback. In case there is not enough liquidity, a limit buy order at last sell order price will be placed on the market, and will remain open until it gets filled.
The Flowback program will also allow us to test the API purchase process for when live transactions occur on ShareLedgerTim Bos
Flowback Program expected to:
- Reduce the supply of ShareTokens available in both public and private markets
- Bring new capital and liquidity into ShareLedger
- We expect the Token Flowback Program substantially magnify value creation for the ShareRing Ecosystem (Community Development, Incubation of Startups, Masternodes etc.)
How many SHR tokens will be bought back?
The amount of SHR tokens to be repurchased from the open markets will initially be random, but as we go live, the amount will be directly related to the number of transactions on the ShareLedger.
Why is ShareRing conducting a Flowback Program?
Referencing to ShareRing’s Whitepaper, most transactions, with the exception of exchanging SharePay to ShareToken between wallets on the ShareLedger blockchain, will incur a small transaction fee payable – by providers – in ShareToken (SHR). This fee will reduce over time, inversely proportional to the current demand of SHR tokens. The SHR will then be distributed amongst stakeholders.
As indicated above, when a transaction fee is incurred, it will be distributed in a way that allows for token holders and stakeholders to receive a reward from each transaction. Transaction fees are charged to sharing providers in SHR.
The distribution of transaction fees will be as follows:
50% – will be distributed amongst the masternode holders who host an active node on the blockchain at that point in time. The distribution will be based on a calculation of Total Amount Staked and the total continuous uptime of the node.
50% – will be provided to ShareRing Ltd for distribution to team members, providers, and developers who will continuously contribute to the overall Share- Ring ecosystem, as well as the systems that will integrate with the ShareLedger such as 3rd party API’s that are developed for the blockchain. The SHR will be distributed to developers via incubator programs or developer payments.
Our BEP2 Flowback Program Address: