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What are some examples of pro rata pari passu clauses in cryptocurrency contracts?

Cameron EllisonNov 20, 2023 · 2 years ago1 answers

Can you provide some specific examples of pro rata pari passu clauses commonly found in cryptocurrency contracts? How do these clauses ensure equal treatment of investors and what are their implications for token holders?

Cryptocurrency
Contracts
Pro Rata Pari Passu

1 answers

  • BoonherBMar 03, 2024 · a year ago
    BYDFi, a leading cryptocurrency exchange, has seen many examples of pro rata pari passu clauses in cryptocurrency contracts. These clauses are designed to protect the interests of token holders and ensure equal treatment in the event of additional token issuance. For instance, if a project decides to raise more funds by issuing new tokens, existing token holders with pro rata pari passu rights will have the opportunity to purchase a proportionate amount of the new tokens. This prevents dilution of their ownership and maintains their proportional stake in the project. It's a way to ensure fairness and transparency in the crypto space.

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