Redemption rate

What everyone needs to know

• The redemption rate determines what proportion of treasury assets can be reclaimed by a token holder by redeeming their tokens.
• By default, all treasury assets that are considered overflow can be reclaimed by token holders. This can be modified using data source extensions.
• A project's redemption rate and extensions can be reconfigured each funding cycle.
• A redemption rate of 100% is linear, meaning a holder with 1% of the token supply can redeem all of their tokens for 1% of available treasury assets.
• A redemption rate of x% where x < 100% will leave some assets in the treasury to share between those who wait longer to redeem. The smaller the x, the fewer assets can be reclaimed.
• A project can set a different redemption rate that takes effect only when the project's current funding cycle has an active ballot.

What you'll want to know if you're building

• A redemption rate can be specified in a funding cycle through the JBController.launchProjectFor(...) or JBController.reconfigureFundingCyclesOf(...) transactions.
• A ballot redemption rate can be specified in a funding cycle through the JBController.launchProjectFor(...) or JBController.reconfigureFundingCyclesOf(...) transactions, which will override the standard redemption rate if there is currently a reconfiguration ballot active.