Unclaimed Rewards: The Outcome
A few weeks ago Spectre.ai SXDT holders were informed about unclaimed rewards that have accumulated in the rewards smart contract over a 2.5 year period, as the firm has distributed over 7,000 ETH driven by business performance. The unclaimed figure (c. 2,000 ETH), after accounting for c. 100 individuals who got in touch requesting their unclaimed rewards to remain unclaimed, would be put to work in one out of five options that were presented to the community over a webinar earlier this month. These options were Idle, Recycle, Burn, Rubicon and Blitz.
The community was then polled via email and in social channels over December, to help the management team assess which options were the most favoured. The results are summarised next.
The poll outcomes as seen to the left saw the community vote in favour of option E ‘Blitz’ followed by either option B ‘Recycle’ or C ‘Burn’.
While during the official webinar, where each option was explained and explored by the management team, the original stance was to simply execute one of the five options in totality, the community made their voice heard that a hybrid strategy would be preferred.
Therefore this was taken onboard and the final decision incorporates this request, as well. This is described in detail next.
After requests by certain token holders (c. 100 in total) to leave their rewards unclaimed, the amount of unclaimed rewards available is in the c. 1,700 ETH amount. After leaving a buffer of a further 100 ETH for future claims on unclaimed rewards (i.e owing to certain token holders being on medical leave during this exercise or other reasons), the net amount distributable is c. 1,600 ETH of which c. 1,400 ETH will be deployed on Blitz with the remaining amount being split 80/20 on options C ‘Burn’ and B ‘Recycle’, respectively. In summary this means, c. 88% of net distributable unclaimed rewards will go towards option E ‘Blitz’, 10% on option C ‘Burn’ and the remaining percentage on option B ‘Recycle’.
Token holders were requested on the special webinar on 5th December (recording found in the token holder portal) pertaining to this exercise to either KYC, login and withdraw all of their rewards by December 30th or if they do not wish to (owing to gas or other reasons) but wish for their unclaimed rewards to not be touched, then to inform us via email or otherwise. Failure to do so would result in forfeiture of rewards or they would be hedged as of December 31st, 2020. At the time of writing, the hard deadline is 15th January, 2021 by which token holders are to write to us to inform us to exclude their rewards from any actions.
A total of c. 1,600 ETH out of the gross distributable amount has already been hedged recently with the remainder being programmatically unlocked over the coming 5 months and exposed to FX fluctuations.
Blitz will be executed over a 12–18 month period commencing January/February 2021. An opportunistic buyback and burn (option C) will be executed by treasury over a shorter period than this and all transaction data (quantities, volumes) will be, as always, published under Corporate Actions on the Spectre Exchange investors page here. Option B ‘Recycle’ will be paid in H1 2021.
Separately, Hatchworks recently published a research piece titled ‘Can Bitcoin cross the Rubicon?” where the research team discusses Bitcoin’s potential place as a global asset alongside other majors, over the coming decade. We are of the strategic opinion that as the underlying financial-trading based business continues to build, the inherent strength of SXDT is its diversification and thematic exposures, achieved via asymmetric hedges, to major trends such as gaming, digital money, AI, IOT, VR as well.
Although the community has not voted in favour of option D ‘Rubicon’ which would see strategic business model hedges taken in Bitcoin, the group’s treasury (DALP) had already constructed a meaningful position of c. $200,000 in Bitcoin and Ethereum a few months ago, thus participating in a considerable rise in these assets already. These asymmetric hedges are tied to SXDT going forward and the group will monitor macroeconomic developments in these asset classes at key milestones over the coming years, polling the SXDT token-holder base regarding crystallisation options.
Disclaimer: No information above is to be considered or construed as investment advice. All rewards have been and continue to be distributed only after appropriate KYC and AML checks are completed.