Impossible's Buy-back Protection Program creates a win/win model for both projects and users — mitigating risks for users whilst empowering projects to build products and communities and redefine the crypto space –all in a sustainable way.
*Update as of 31 Oct 2023: The buy-back period for Brickken has been updated to 31/10/2023 - 7/11/2023 4:00PM UTC.
Hey Impossible Community,
As part of Impossible’s continued efforts to ensure the protection of our community, we are thrilled to announce Impossible has secured a token buy-back protection program (“Program”) for Brickken token sale participants. Only users who participated in Impossible’s Brickken token sale (“Token Sale”) can access the downside protection. Kindly refer to section “2. Who is eligible to participate in the Program?” for more information on eligibility.
Through our close partnership with the Brickken team, we are confident they will deliver on their protocol, roadmap and vision of revolutionizing the tokenization of real-world assets on-chain. This token buy-back protection conveys the same confidence to all those who have participated in the Token Sale.
The Impossible Buy-back Protection Program Details
1. How do we protect users?
Simple Explanation 3 months after TGE, users has two buy-back options that they may or may not decide to take up:
Buy-back #1 — Unlocked Tokens
Brickken has pledged, on-chain, to buy-back your unlocked BKN tokens at a price of US$0.09, or approximately 30% from the Token Sale price, subject to the conditions below.
Users will be able to trade their unlocked tokens on OpenSwap at the buy-back price of US$0.09.
Buy-back #2 — Locked Tokens
Users who opt to participate in the buy-back program can also cancel their claim on the remaining locked BKN tokens and get airdropped an equivalent amount of stablecoins based on the buy-back price of US$0.075.
Users will receive the stablecoin airdrop within one week after the buy-back period ends.
This means that if you are eligible (user meets the conditions stated in Q2 below), you can sell back the amount of BKN tokens purchased during the Impossible Launchpad sale, thus protecting you from potential downside price risk of BKN after 3 months.
Technical Explanation Under the Program, eligible users may sell back the BKN token, subject to the conditions set out below:
3 Months after TGE
Public Sale price
Unlocked tokens: $0.09
Locked tokens: $0.075
20/10/2023 - 27/10/2023
Buy-Back Period (Opened)**
31/10/2023 - 07/11/2023
Number of tokens
100% of total tokens purchased by each eligible user during the Token Sale
Buy-back Currency Denomination
Unlocked Tokens Eligible users will receive the same currency / cryptocurrency used to complete the initial Token Sale (e.g., USDT or IDIA) Locked Tokens
Eligible users will receive a stablecoin equivalent of their BKN tokens that are locked based on the buy-back price
*Evaluation Period: The time which Impossible will determine if the token price has/will drop below the downside protection price.
**Opened: The time in which the buy-back will be available if Impossible decides to open up the program during the Evaluation Period
Impossible Finance reserves the right to not activate the Program or run it on OpenSwap, if the market price of the token is expected to be above the buy-back price during the evaluation period.
2. Who is eligible to participate in the Program?
Users who are eligible for the buy-back program consist of “eligible users” who are users whose wallet addresses participated in the Token Sale. Under the Program, eligible users can only sell back the tokens, which were bought during the Token Sale and held at the same wallet address used in the Token Sale (“Sale Wallet”) until the Buy-Back Valid Time.
To clarify, users who are NOT eligible for the buy-back program consist of:
Users who transferred their tokens to any Centralized Exchange (“CEX”) or Decentralized Exchange (“DEX”)
Users who have transferred their tokens out of the Sale Wallet
Unless otherwise provided by the scenarios above, the tokens that have been sold or transferred out of the Sale Wallet are not eligible for buy-back under the Program. For example, if $100 of tokens were bought in the Token Sale and only $40 were held until the Program starts, only $40 can be sold back in the Program (assuming the tokens are fully unlocked).
Impossible Finance and the project team reserve the right to modify the eligibility conditions before the buy-back valid time period, and will notify the community if so modified. Eligible users may contact the Impossible Finance team if they believe there is any error in the number of tokens they could sell back under the Program.
Note that OpenSwap may charge users a small fee to complete the buy-back process.
3. When can I use this?
Subject to the above conditions under Q2
Detailed Example (3 Months after TGE) — Participate in the buy-back program because BKN price goes down
20 July 2023 (TGE)
Token Public Sale Price = US$0.13
User buys 10000 BKN tokens = net worth US$1300
At TGE, 20% of tokens; 2000 BKN is unlocked = US$260 BKN tokens;
80% of tokens; 8000 BKN remains locked = US$1040
27 October 2023 ~Day 90 (Fourth round of token unlock; inclusive of first unlock of 20% at TGE)
Token Market Price = US$0.078 (price decreases 40% from IDO)
Buyback #1 — Unlocked Tokens
Assuming user has not sold any BKN tokens, user has a total of 4,181 unlocked BKN tokens (41.81%) = net worth US$326.12
User is eligible to sell unlocked tokens at buy-back price of US$0.09 = $376.29
User avoids losing ~US$50 from the buy-back program
Buyback #2 — Locked Tokens
Additionally, user can opt to cancel lock-up period and sell remaining locked tokens (58.19%) at buy-back price of US$0.075
Should user decide to activate buy-back #2, they will receive US$436.43 in stablecoins
4. Mechanism: How can you access the program?
Buy-back #1 — Unlocked Tokens
We will be implementing the buy-back mechanism for unlocked BKN tokens on OpenSwap’s whitelisting limit order feature. OpenSwap was Impossible’s second IDO project, and we are firm believers to continue helping our past and present projects to integrate together to build a stronger Impossible ecosystem.
The OpenSwap feature that allows us to make this program a reality is called “Buyback Queue”. The feature is audited by CerTik, and transparent on-chain for users to see the buy-back protection. You can read more about the mechanism here.
Buy-back #2 — Locked Tokens
To participate in the buy-back #2 for locked BKN tokens, users MUSTopt-in on the Claim page on the Impossible Finance platform. Once doing so, eligible wallets will receive the stablecoin airdrop one week after the buy-back period ends.
Users will only be able to opt-in for the buy-back during the period of 27/10/2023 - 03/11/2023. Once the buy-back period ends, users will no longer be able to swap their locked BKN tokens for stablecoins and must see their BKN tokens to maturity.
To participate in the buy-back #2 for locked BKN tokens, users MUSTopt-in on the Claim page on the Impossible Finance platform.
5. Fundraise Custody
For transparency, respective proceeds from the Token Sale (“Proceeds”) for the Program will be held in a multisig wallet protected by both Brickken and Impossible Finance council members to fund the Program. Address may be publicly shared later.
The remaining Proceeds not required for the Program will be returned to Brickken so they can use it to build out their ecosystem.
6. Why are we doing this?
At Impossible Finance, we want to set the tone for what Launchpads should be. We treasure our community, first and foremost. We aim to find the best crypto opportunities for you and at the same time try to protect you against risks.
By reserving part of the Proceeds to fund the Program, we are actually taking the first step in creating something mentioned in our original whitepaper, the SSIDO - a self-sustaining IDO.
While the funds are held in escrow and the team works to deliver on its milestones, they can also be used to earn yield in safe DeFi protocols, allowing for projects to build with confidence and garner support from the community. We now have run a few Programs and we believe it’s a good way to make sure all users have less risk when backing those who are BUIDLers.
Brickken simplifies the creation, selling and management of digital assets, by providing a comprehensive platform with user-friendly tools, making it effortless for companies to tokenize.
Impossible Finance is the go-to crypto investment platform that empowers you with high-quality, fair and accessible crypto opportunities. We simplify DeFi so you can enjoy fairer investing, cheaper trading and better yields through our accelerator, launchpad, and swap platform.
Impossible reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice.
Only users that have participated in Impossible’s IDO#20 Brickken Token Sale will be eligible for this buy-back protection. Specifically, only KYC’ed wallet addresses that have purchased and claimed BKN tokens on the Impossible Finance Launchpad will be protected.
Users need to complete their KYC and also be from an eligible jurisdiction to participate in this token sale.
Impossible's research analysts dive into Brickken — the project revolutionizing the tokenization of real-world assets on-chain and our 20th IDO! Find out more about the project highlights, tokenomics, team and more in our research report!
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