🔁Conversion & Redemption

Converting between TORCH and xTORCH

TORCH and xTORCH are mutually convertible into each other, but the process is different depending on the direction.

TORCH to xTORCH Conversion

TORCH can be freely converted into xTORCH at any time. The process is instantaneous, and the ratio is 1:1.

xTORCH to TORCH Redemption

Converting xTORCH into TORCH implies vesting, the duration of which is selected by the user. The conversion ratio will increase proportionally with the vesting duration:

• The minimum vesting duration of 15 days will provide a 1:0.5 ratio

• The maximum vesting duration of 6 months will provide a 1:1 ratio

If the selected vesting duration is lower than the maximum (ratio < 1:1), the unclaimed excess TORCH is burned.

Example:

User 1 chooses to redeem 1000 xTORCH to TORCH over a 15 day period. After 15 days, the user receive 500 TORCH. The other 500 TORCH is burned.

User 2 chooses to redeem 1000 xTORCH to TORCH over a 6 month period. After 6 months days, the user receives 1000 TORCH. The other 500 TORCH is burned.

Automatic Dividends Allocation During Redemption

While being redeemed, the xTORCH is automatically allocated to the Dividends plugin for the user, but only grants 50% of the typical rewards. This allocation is automatically canceled once the vesting duration has ended.

Example: A user chooses to redeem 1000 xTORCH into TORCH over a 6 month period. During that conversion period of 6 months, the user receives rewards through the Dividends plugin at half the rewards rate as a user who allocated 1000 xTORCH to the Dividends plugin.

Canceling a Redemption

The xTORCH redeeming process can be interrupted at any time by the user.

Any canceled redemption before its end will void the whole process. The user will retrieve their entire amount of xTORCH and no TORCH.