BUYBACK SYSTEM

Buybacks are the most important aspect of the ETO token sale framework. They give Enterprise Tokens a price floor and reduce net supply of an Enterprise Token as tokens that are bought back are burned.

Buybacks allow ETOs to issue money-backed utility tokens. At least 80% of the money spent on Enterprise Token purchases during the ETO will be set aside for buybacks, and this 80% creates a price floor.

Four Buyback Rounds

For every ETO, buybacks will be issued in four rounds.

• First buyback will take place 6 months after the ETGE

• Second buyback 9 months after ETGE

• Third buyback 12 months after ETGE

• Fourth buyback 15 months after ETGE

Each buyback has two phases: primary deposit phase and secondary deposit phase.

For each participant, the address used to participate in the ETO is whitelisted for buyback participation; only these addresses will be able to claim a buyback.

The amount of tokens the address purchases in the ETO (from the team) is recorded as the primary quota. The tokens purchased on NEPRI ETExchange and exchanges are secondary quota.

Primary Buyback Phase

During the primary buyback phase, ETO participants have to deposit Enterprise Tokens into the buyback portal.

Even if a person sold his Enterprise Tokens, he can buy Enterprise Tokens on the NEPRI ETExchange and claim a buyback.

If the Enterprise Token price is below the price floor, Enterprise tokes can be bought on exchanges and then used to claim a buyback from the team, for risk-free profits. Though, during the primary buyback phase, a person cannot claim a buyback for more than the Enterprise Tokens he purchased from the team.

For example, if a person bought 1,000 Enterprise Tokens in the ETO, he can only claim a buyback 1,000 Enterprise tokens during the primary buyback phase.

Secondary Buyback Phase

If the entire quota for round 1 buybacks is not claimed, the secondary deposit phase goes into effect.

The primary buyback quota for round 1and round 2 is 20% of sold Enterprise Tokens , and 30% for rounds 3 and 4.

The primary buyback quota that is not used by people will be pushed to the secondary buyback phase.

For example, round 1 allows buybacks for 20% of sold tokens. If people only claim half of this in primary phase, 10% of sold tokens can be bought back in secondary phase.

There is an important difference between primary buyback and secondary buyback. The primary buyback is limited to the maximum number of tokens a person bought from the team during the ETO, but the secondary buyback is 4x the number of tokens a person bought.

What this means is if a person buys 10,000 tokens in the ETO, primary buyback is limited to just 10,000 tokens, but secondary buyback is as high as 40,000 tokens.

Of course, the additional 40,000 tokens have to be bought from other ETO participants on the NEPRI ETExchange. These Enterprise Tokens are still offered a guaranteed buyback.

Deadlines

Tokens must be deposited no later than 7 days before the designated deadline of each buyback phase.

Though, skipping or missing a round does not change the ability to participate in other buyback rounds.

The buyback portal will be opened 30 days prior to deadline, giving ETO participants plenty of time to deposit their Enterprise Tokens so there should be no excuse for missing the deposit phase.

Quota Per Round

Again, there are four buyback rounds. Buyback phases are not the same as Buyback rounds.

Each round has 2 two-phase.

• Round 1 happens 6 months after ETGE, and it has a primary phase and a secondary phase

• Round 2 happens 9 months after ETGE, and it also has a primary phase and a secondary phase

• Round 3 happens 12 months after ETGE, and it also has a primary phase and a secondary phase

• Round 4 happens 15 months after ETGE, and it also has a primary phase and a secondary phase

Recap: The primary phase lets an ETO participant claim a buyback for only the Enterprise Tokens he purchased from the team. The secondary phase lets them claim buybacks for Enterprise Tokens they bought on the NEPRI ETExchange.

In each round (again, there are 4 rounds), ETO participants will be able to claim a buyback for a portion of the amount they paid in the ETO.

During the primary deposit phase, people can claim:

• 15% of their payment back in round 1

• 15% of their payment back in round 2

• 25% back in round 3

• 25% back in round 4

To make this easier to grasp, if a person invests $10000 to buy 10000 tokens:

• In round 1, 2000 tokens will be deposited to claim a $1500 buyback (80%)

• In round 2, 2000 tokens will be deposited to claim a $1500 buyback

• In round 3, 3000 tokens will be deposited to claim a $2500 buyback

• In round 4, 3000 tokens will be deposited to claim a $2500 buyback

After all FOUR buybacks have been claimed, the person would return the 10000 tokens bought in the ETO for a $8000 buyback. All the Enterprise Tokens the person had bought in the ETO would be burned.

Splitting buybacks into FOUR rounds is important as it gives teams enough time to prove the viability of their business, product, and the product/market fit.

If holders believe teams have done well in the first 6 months, they won’t claim a buyback and teams will be able to access some of the funds that had been set aside for buyback.

With these new funds, teams will have a few months to either advance their business, product or use the funds for acquiring users and scaling their development.

If the holders are impressed with the performance (as in the Enterprise Token is doing really well), no buybacks will take place in any round and the team will be able to access even more funds to continue their work.

Notably, if a team is performing well, people could still claim buybacks. This will benefit the true believers of the project. Some of the supply will be burned, with the remaining supply left only in the strong hands of the true community of believers.

On the other hand, if teams fail to deliver, holders will simply claim maximum buybacks in each round.

The four-round system ensures that teams are allowed an opportunity to prove themselves. If the team continuously underperforms, investors can return 100% of the Enterprise Tokens, thereby eliminating the project or business while claiming their maximum buyback.