Good idea to bump your post. It must have been very time consuming to work this all out. Thanks @Rigorous for helping us all here. Would be cool if KryptoKings can confirm your thoughts and calculations.
What I am asking myself now is what NPX token holders can then do with the DAF tokens they received. From what I understand these DAF tokens represent a part of a portfolio value for a real asset (correct me if I am wrong). Will NapoleonX have to take care that every token from every new DAF gets listed on an exchange or will they offer to buy these tokens back for a major crypto currency? I might still be a bit confused, so excuse me if my question makes no sense ...
What I am asking myself now is what NPX token holders can then do with the DAF tokens they received. From what I understand these DAF tokens represent a part of a portfolio value for a real asset (correct me if I am wrong). Will NapoleonX have to take care that every token from every new DAF gets listed on an exchange or will they offer to buy these tokens back for a major crypto currency? I might still be a bit confused, so excuse me if my question makes no sense ...
Excellent question, one that was on my list
How can you cash out your DAF tokens? The whitepaper has 2 sections about redemption.
Redemption Threshold
Even if DAFs are autonomous, they are governed by their subscribers. A redemption option is to be offered to let them the opportunity to close a DAF if a sufficient number of subscribers want to. Such option gives an ultimate liquidity to any subscriber whatever the second market may be. The Redemption Threshold is set at 75%.
Redemption of the DAF
DAF token holders may decide to terminate the DAF and redeem it. To occur, the number of voting rights deciding such redemption shall be above 75%.
If redemption is decided, then all non crypto-assets in which the DAF is invested shall be liquidated within 5 days. After such liquidation, the corresponding smart contract shall terminate: DAF tokens are redeemed and all crypto-assets are transferred to the DAF token holders in proportion of their share in the DAF.
It seems as though you can not cash out until a majority vote has been reached. is it correct that your deposit is stuck in the DAF until redemption?
Well DAF investors will have 2 options to cash out:
1. collectively agree to redeem the DAF with a 75% majority
2. sell their DAF tokens on the secondary market knowing that the DAF assets will be made of cash (ETH or fiat) and real assets that you can easily value. Hence the calculation of the NAV, which will be done daily should provide with some floor on the valuation and avoid complete price discovery as is usually the case.
NPX investors, with their portfolio of DAF token through the payment of botons will be able to tailor made their allocation and decide on which DAF to cash out. It will also be possible through our platform to program this in advance.
