Announcement of FT Long-term Holder Assets Compensation Plan and FT1908 Warrants to be Issued FCoinOfficial Follow Aug 3, 2018 · 3 min read

Dear community users:

As the value representative of the FCoin platform, FT has a permanent right to participate in revenue distribution (see revenue distribution announcement) and a range of community governance rights (see FCoin Strategic Upgrade Announcement).

The FT issuance mechanism has stabilized over time (see the FCoin Strategic Upgrade Announcement). Considering the current market situation, in order to further protect the interests of FT holders, FCoin launched the FT long-term holders’ asset compensation plan:

I. Warrants FT1908 (delivered in August 2019)

FCoin will launch a new warrant FT1908, which will be issued in a 1:1 ratio with FT through the FT long-term investor compensation mechanism. After the expiration, the FT will be delivered at a 1:1 ratio, and FT1908 will not be listed and traded in the market.

II. The FT long-term holder compensation mechanism description

1. Define FT/ETH=0.0003 as the asset compensation base price (FT launch price is 0.000025ETH for reference).

2. The FT long-term investor’s asset compensation share is issued on a monthly basis, and the compensation is issued as FT1908. Starting from this month (August 2018), if the monthly average price of FT/ETH is lower than the compensation base price, the compensation plan will be activated:

Community user monthly FT1908 compensation = (compensation base price — FT/ETH average monthly price) / compensation base price * The user’s current month FT holding amount

The user’s current month FT holding amount is calculated as: in the current month, each day 0 (GMT+8, the same below) takes a snapshot of the user FT holding, taking the minimum value of all 0 point snapshots in the current month.

3. The compensation of FT long-term holders is calculated on a monthly basis, and clearings before the 5th of the following month. The first snapshot time is 0:00 on August 4, 2018, and the first batch FT1908 is issued before September 5, 2018.

4. The frozen FT, including the “defrosting and locking” part of FT, will not participate in the FT long-term holder compensation plan.

5. In the process, if the FT’s circulation reaches the upper limit of 10 billion (according to the daily assessment), the FT long-term holder compensation plan is automatically terminated and announced to the community users.

III. The description of the value of the FT1908

1. FT1908 is a future FT conversion warrant issued by the FT Long Line Holder Compensation Plan. It will be officially delivered at 0:00 (GMT+8) on August 3, 2019. It can also be simply understood as the future FT being delivered at the agreed time after issuance.

2. The value of the FT1908 consists of two parts, one is the net value of the FT on the delivery date, and the other is the accumulated dividend of the FT locked in the FT1908.

IV. Explanation of the FT long-term holder’s asset compensation plan

The core of this mechanism is:

Before the completion of the full release of the FT, once the FT/ETH monthly average price is lower than the compensation base price (0.0003ETH), the future FT will be prorated to the FT holder (excluding the pre-issued and locked FT) on the agreed delivery time.

After the FT long-term holders’ asset compensation plan is launched, the impact on the FT long-term holders will be:

1. FT long-term holders will not suffer monthly asset losses (Priced in ETH, without including all revenue distribution during this period) if the FT price is lower than the compensation base price before the FT is fully issued.

2. The newly issued FT locked in the FT1908 warrant will also accumulate revenue distribution and be allocated to the FT1908 holder on the due delivery date. That is to say, the expiration value of the FT1908 itself will rise continuously with the accumulation of time.

3. The part other than the community reward in the total amount of FT issuance, that is, the pre-issued and synchronized unlocking part described in the white paper, is not included in this asset compensation plan.

FCoin Team

August 3, 2018