ARTX Shares - Buyback mechanism
How the buybacks will be performed?
As we explained in the ARTX Shares official launch, ARTX token buys will be made randomly throughout the month (with the team’s own liquidity to maintain the compound interest in the bot during the month), so that no one can speculate on the time when the buybacks will be made.
This has a series of implications that are detailed below so that all our premium holders have all the information and understand how the process will be carried out.
As the performance of the bot progresses and given the profits it generates, the team will be making purchases of ARTX tokens during the month with its own liquidity to have a bag of tokens to distribute among the holders at the end of the month.
Once each purchase has been made, the team will announce the number of tokens purchased and their price in dollars, so that the community can keep track of the dollars invested in the purchases.
As the price of ARTX will vary during the month, it is important to always keep in mind the price at which the tokens were purchased so that at the end of the month we can distribute the appropriate number of tokens, whose average price will never (or rarely) coincide with the price at the time of distribution.
It is important to note that if the price rises during the month and at the time of distribution (1st-5th of the following month) the token has a higher price, the premium holders will benefit due to the appreciation of the bags of tokens that were purchased during the month (at lower prices) by the team.
But if the token depreciates during the month and at the time of distribution has a lower price, the premium holders may be disadvantaged, due to the depreciation during the month of the token bags purchased.
This should ultimately be beneficial to premium holders, as we expect the token to appreciate over the months, but we want to detail the purchase mechanism so that there is no misunderstanding.
What happens if the team buys more ARTX than the final monthly profits of the bot?
If at the end of the month the actual profits of the bot are less than those already realized by the team (buying back tokens throughout the month), the ARTX left over will be kept in the team’s wallet to be distributed with the next month’s profits. This will also happen if the bot during the month does not perform well, in that case, the ARTX to be distributed might be those of the Treasury Fund, and those already purchased by the team will be kept in the wallet to be distributed as profits of the following month.
Simplified: ARTX tokens bought back by the team will only be distributed for the profit obtained by the bot. In the case of guaranteed distribution, Treasury Fund tokens will be used.