Preferred Tokens
Parameters
Set conversion audience, protection, and call terms.
Labels common $TOKEN and conviction preferred $TOKEN throughout the demo.
$
Common $TOKEN available to convert.
ICO buyers Conversion
100100% converted
$TOKEN Treasury Posts
150 common $TOKEN1.50x total reserve
Conviction preferred $TOKEN issued: 100.
Protection reserve adds 1.00x because tokens deposited by ICO buyers cover the first 1.00x; starting call premium adds 0.50x.
Holder redemptions before this month return common $TOKEN without protection.
Call premium decays linearly to 0% over this period.
Day 0 call amount: 1.50 common $TOKEN per conviction preferred $TOKEN.
Flowchart
Conviction preferred conversion, audience commitment, collateral, and settlement path.
Window opened
Conviction Preferred Conversion
ICO buyers cohort can convert common $TOKEN.
Available to convert
100common $TOKEN
Cohort
ICO buyers
ICO buyers deposit
100 $TOKEN
Treasury posts
150 $TOKEN
common token reserve, 1.50x total
1.00x protection + 0.50x call premium
250 $TOKEN total deposited
Conversion Output
100conviction preferred $TOKEN
Token backing conviction preferred
Holder deposit100 $TOKEN
Treasury collateral150 $TOKEN
Total backing250 $TOKEN
Conviction Preferred Terms
Issuer call decay
12 months
Call premium
50%
Holder conversion cliff
12 months
Protection term
Perpetual after cliff
Issuer call premium decays through the call window; holder protection starts after the cliff.
Holder Settlement / Issuer Call
Common $TOKEN Price at Redemption-50.0%
$0.50
$0Open $1.00$2.00
Holder Redemption MonthProtection active
Month 12
Month 0Cliff: Month 12Month 24
Holder receives
$100.00 holder position
200 common $TOKEN after protection top-up
Without conversion: $50.00 / with conversion: $100.00
Protection payout: $50 across converted ICO buyers.
Issuer outcome
Supply committed since issuance
100 common $TOKEN
Held through term
$TOKEN Treasury collateral consumed
100 common $TOKEN
50 common $TOKEN released after settlement
The only issuer cost is locked $TOKEN Treasury collateral.
At $0.50 after the cliff, holders receive protection and see an effective 0.0% outcome instead of -50.0%.