Redemption FAQs

Can I withdraw my allocated USDR from the redemption contract and if so, what are the restrictions?

Yes, allocated USDR can be withdrawn from the redemption contract at any time, during any epoch, however, only in the amount of allocated USDR that has not been used for redemptions of USDC. This means for every $0.90 unclaimed USDC that has been distributed, 1 USDR cannot be removed.

Example for illustrative purposes: A user has deposited 100 USDR into the redemption contract. At the end of epoch 1 this user receives 5 USDC to redeem. At the end of epoch 2 the user receives an additional 4 USDC to redeem. The user now has 9 USDC that can be redeemed by clicking the “redeem button.” Given the redemption ratio of 0.90 USDC to 1 USDR, 10 of the allocated USDR have been used for redemptions. This means that the user can withdraw 90 USDR of the previously allocated 100 USDR. However, the 10 USDR which have been used to redeem the 9 USDC are locked and will be burned when the USDC is eventually removed by the user.

Why are the first 10 epochs specifically called out in the redemption update and why are they handled differently than the following epochs?

Over the course of the last several months, Tangible has been actively selling the real estate backing USDR through both onchain and offchain sales. The proceeds from these sales have been collected into a segregated multisig wallet designated to hold these assets until the redemption smart contracts and process were completed. Given that this is now a sizeable sum of money, approximately 10% of the USDR backing, Tangible wants to make sure that there is not a significant first-come-first-served advantage to users who allocate their USDR for redemptions by the start of epoch 1. As such, this initial tranche of funds will be evenly distributed across the first 10 epochs (20 days, each epoch is 48 hours) ensuring there is adequate time for all users who want to participate in the redemption process the opportunity to receive redemptions from this initial redemption amount.

What happens after the first 10 epochs are over? Will there still be USDC to redeem every 48 hours?

After the initial 10 epochs are completed, Tangible deposits into the redemption contract will be based on the total sales completed during the previous 48 hours. For example, if USD $20,000.00 in Basket tokens have been sold via onchain sales, then that sum will be sent to the redemption contract during the Deposit phase (as defined in the Redemption Information), distributed proportionally amongst all USDR after the following Allocate phase is complete (as defined in the Redemption Information).

If there have been no additional on or offchain real estate sales between the end of one Deposit phase (as defined in the Redemption Information) and the next, i.e., within 48 hours, then there will be no additional USDC deposited or new USDC distributed for redemption. Tangible deposits into the redemption contract will be continuous on the condition that real estate sales (onchain and/or offchain) have occurred, if not, then there will be no USDC available for new redemptions until the next real estate sale.

When is the last epoch?

The final epoch will end once ALL remaining real estate backing USDR has been sold and deposited into the redemption contract by Tangible or once all USDR in the redemption contract has received 0.90 USDC per 1 USDR, whichever comes first. The proceeds from the final sales of real estate will be distributed proportionally amongst all USDR holders in the contract at the end of the Allocate phase. The last epoch may be months after the redemption contract deploys, the timing is dependent on the speed of sales and the amount of USDR allocated for redemption.

When is my USDR burned?

USDR is burned in the transaction when users claim USDC. For example, a user claiming 90 USDC will permanently burn 100 USDR during the transaction when the 90 USDC is removed by the user from the redemption contracts and deposited into the user’s wallet.

When is the locked $RWA distributed?

Subject to regulatory requirements, veRWA will be airdropped to eligible users’ wallets on re.al once the final epoch is completed, based on the information provided above. Each eligible user will receive 0.04 veRWA per USDR burned through the redemption process.

Why is KYC required to claim?

Due to the rapidly changing regulatory landscape, all users will have to KYC/KYB through our third party KYC/KYB provider Fractal ID. Fractal ID will be integrated into the redemption site.

We did not make this decision lightly and know that some community members might be upset by this new development, particularly those that might be bad actors. However we take comfort in the fact that moving in line with the legal and regulatory landscape helps to safeguard the interests of our community.

What if I miss the redemption process or don’t want to participate? Will I be able to recover value lost in the depeg?

Holders that miss the early epochs can participate for full 0.90 USDC until the end of the redemption contract. Users who do not wish to wait for redemptions or choose not to participate in the redemption process can swap USDR on Pearl at any time. Note that if this option is taken, please beware that it will be the price as listed on the decentralized exchange instead of at the redemption value of $0.90 USDC and $0.10 worth of veRWA.

Can the redemption process change over time?

Tangible reserves the right to alter the redemption process at any time based on program performance, market conditions, user feedback, regulatory and legal input and any/all other relevant considerations. Users will be given advance notice on any changes unless immediate action must be taken to avoid harm to the community. Shifts in the redemption process will not require community input or vote, however we are always open to constructive community feedback.

We thank those of you who have provided Tangible with constructive feedback and open dialogue and thank you for your patience in this process.