This section contains further details on the backing of Token Factory's asset-backed tokens, and the means by which end users can participate in the buy-back program for the tokens they own.
Token Factory and foundation Stichting Token Factory have been established to develop and provide asset-backed tokens, in order to offer these tokens via Verified Partners like Ronin Apps ( ronin.id ) to end users.
Verified Partners will provide funds under management of foundation STF with the aim of creating a financial back-up for a token. STF will organize regular buy-back programs. During these buy-back programs, STF will do its utmost to give a fair price for the EuroX tokens, based on – inter alia – the dedicated assets held in STF.
Foundation STF has the sole purpose of holding assets in order to act as a financial back-up for the minted tokens. The foundation will not perform any other activities. Token Factory acts as the director of the foundation. The management of the tokens will also be outsourced to the Token Factory.
The Token Factory could consider creating extra tokens if the stock of tokens is insufficient based upon the demand and on the basis of extra funds being deposited in STF.
The issuer of the tokens, being foundation Stichting Token Factory, commits itself to offer at least once a year, to buy back the tokens for a consideration i.e. purchase price per token to be determined by the STF at its sole discretion, taking into consideration all relevant market circumstances as well as its financial position.
Tokens that have been bought back are removed from the Smart Contract, also known as "burning". This is to ensure that the amount of tokens in circulation always reflect the amount of assets held by STF.
Token holders shall receive an offer from STF on a regular basis to buy back any token under management of Token Factory for a purchase price to be determined by STF. As long as token holders can trade their tokens on the secondary market facilitated by Verified Partners, the token holders shall not have any rights under a buy-back program.
To safeguard equality, i.e. similar treatment for all token holders at any given time, predetermined and transparent procedures have been drafted, entailing under what circumstances the launch of a buy-back program will be offered. Further, if there is a request by a token holder and the management board of foundation STF makes the assessment that there are sufficient funds to buy back ALL tokens in question, then, a buy-back program will be launched as described, assuming that there are no other buyers in the secondary market, i.e. Verified Partners, hence, making the launch of the buy-back program obsolete.
STF will offer to launch its buy-back programs on an annual basis, as long as there are any outstanding tokens issued and a valid request from a token holder, as defined below.
A holder of a token minted by STF, that is unable to sell its token via a Verified Partner, can submit a written request to Token Factory and ask to participate in the annual buy-back program for that particular token. This request must have been received by Token Factory no later than May 15 of the year in question.
If the buy-back program is being launched, a valuation of all dedicated assets will be conducted, whereas a “NAV” (Net Asset Value) will be calculated and made public, in order for the token holders to choose to sell back their token(s) or not. The calculated NAV will be confirmed and signed off by the Auditor of STF.
Click on the links below to download STF's balance sheets as a PDF.
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