The buybacks are processed in 4 rounds, over 15 months.
The extended time span allows teams to prove themselves. At the same time, the ability of ETO participants to claim their guaranteed buyback turns into a tool to pressure teams that are not performing well.
Any Enterprise Token bought back is burned, thereby reducing circulation and project or business valuation.
The burn system also creates a penalty on teams that fail to deliver for 15 months, as holders can claim buybacks for 100% of the purchased Enterprise Tokens, thereby eliminating the business or project.
The burns also cause the eventual circulating supply of an Enterprise Token to be left only with long-term believers.
The team is mandated to buy back every Enterprise Token in circulation until the last buyback round is complete.
Any unsold Enterprise Token like Enterprise Tokens for team, foundation, marketing, advisors, etc. begins unlocks after the 15th month.
The locks enforced in an ETO are trustless. If a team attempts to circumvent the terms with a stealth dump, holders’ trust is lost and the business or project is forced to buyback all Enterprise Tokens from the holders, to a point of Enterprise Token elimination.
The Enterprise Token has bonding curves, which are smart contracts that provide Enterprise Tokens using buy and sell functions, thus creating their own market. The price for each Enterprise Token increases as Enterprise Tokens are bought from the contract and decreases as they are sold back. So, in effect, a trade is determined by the average price of each Enterprise Token in the transfer batch and the amount of Enterprise Tokens on the market.
Investors can sell back Enterprise Tokens at any time, as the contract is 100% collateralised at all times and the contract autonomously creates an instant market, essentially giving buyers control over the business or project and team.
Enterprise Tokens are sustainable, transparent, and fair, as they effectively distribute governance, align interests between team and community, ensure accountability and incentivise early adopters, investors, and usage of the security and utility token long-term.