As referred to in the previous statement, “Elastos Foundation Announces ELA Buyback Program to Support DPoS 2.0 Upgrade, Pending CR Approval”, Proposal #74 “Elastos DPoS 2.0-A New Staking Model” has been approved. Subsequently, it is the proper juncture for the Elastos Foundation to announce the terms and conditions of the aforementioned Buyback Program:
ELA Buyback Program Initiation:
Since DPoS 2.0 has greatly changed Elastos’ broader consensus, there will be a significant transition period following DPoS 2.0’s implementation. The ELA Buyback program is designed to secure Elastos’ Smartweb infrastructure and promote a safe and smooth transition into DPoS 2.0 consensus.
ELA Buyback Program Objective:
The ELA purchased from this program will be deployed to support the initial node construction for DPoS 2.0.
Once the nodes participating in DPoS 2.0 consensus achieve a reasonable scale and operate smoothly for a substantial period of time, the designated ELA will be unstaked from DPoS voting gradually and over several stages. After the unstaking process has been completed, EF will disclose a detailed plan delineating how the purchased ELA will be used going forward.
ELA Purchase Amount:
A maximum of 1 million ELA.
ELA Purchase Method:
All ELA will be purchased from the open market.
Timeline of Execution:
The ELA Buyback Program will span from its release date until either the conclusion of the penultimate month prior to the launch of DPOS 2.0 OR November 30, 2022 – whichever comes first.
ELA Storage Address:
Progress updates for the Buyback Program will be released on a monthly basis, with details including: assets used for ELA purchases, ELA purchased in the current month, cumulative ELA purchased, transaction records, and more.
Within 45 days following the conclusion of the Buyback program, final numbers will be released.
Reasons for Potential Termination of the Buyback Program:
When one of the following conditions is met, the Buyback Program will be terminated:
1. The buyback period expires;
2. The quantity of purchased ELA reaches 1 million ELA;
3. Unforeseeable Events (including but not limited to relevant national policies and legal adjustments, asset-related reasons, etc.).
Disclaimer of Rights Reserved:
The ELA Buyback Program represents an effort by the Elastos Foundation to promote a smooth transition to DPoS 2.0 consensus, and it does not constitute a mandatory obligation. The ELA Buyback Program may not be fully implemented due to various unforeseeable factors, and may be terminated at any time. In all cases, the Elastos Foundation will provide information disclosure in a timely manner.
*This statement only reflects the current views of the Elastos Foundation regarding the upgrade of Elastos’ DPoS consensus and a corresponding action plan that facilitates a smooth transition to a new DPoS consensus mechanism. None of the above should be regarded as professional financial investment advice, nor should it be used to evaluate or make any investment decisions.