Our GENS opt-out mechanism for lockdrop participants

October 22, 2021
Our GENS opt-out mechanism for lockdrop participants

We aim to please as many of our users as possible, so we’ve developed a method for  lockdrop participants to opt out of GENS if they wish.

A number of users who locked their EQ for GENS were expecting to receive GENS tokens upon the successful completion of our Kusama parachain slot auction bid. Winning the Kusama auction is delayed for objective reasons, but we are invested in taking care of the users that make our work possible. So this innovative GENS opt-out mechanism is an opportunity for users who want to sell their GENS allocation and get BUSD until we launch our parachain on Kusama. It happens via an open auction process with no penalties involved.

We would like to test the process before rolling it out at scale, so the initial program parameters for this wave of opt-outs will be limited in the following ways:

  1. An individual cap of 10,000 GENS: all users at or below this allocation may participate
  2. A campaign cap of 1 million GENS: This is the maximum number of GENS allowed in this wave
  3. Total duration: 21 days

How does it work?

Participants will submit their GENS allocations to a dedicated pool and buyers will lock BUSD in an opposite pool to make the auction work. The auction will run for three weeks (21 days). When it concludes, buyers and sellers exchange their allocations at a GENS/BUSD price determined by dividing the total amount of BUSD contributed by buyers by the total amount of GENS contributed by sellers at the end of the auction period.

If we see elevated demand and no significant market arbitrage during this “test flight” auction, we will launch another auction with more relaxed parameters.

Note, that GENS will become available for buyers with three-month vesting after a three-month cliff.

We will of course be keeping you updated via our social media channels and Telegram group. Be sure to follow/join our channels so that you can stay in the loop!

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