What are the differences between pari passu and pro rata in the context of cryptocurrency?

3 answers

• May 08, 2022 · 3 years ago
  In the context of cryptocurrency, pari passu refers to the equal treatment of all investors or token holders. It means that everyone has the same rights and privileges, and no one has priority over others when it comes to the distribution of assets or profits. This ensures fairness and prevents any preferential treatment. So, in simple terms, pari passu means that everyone gets an equal share.
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• May 08, 2022 · 3 years ago
  Pro rata, on the other hand, means that the distribution of assets or profits is based on the proportion of one's investment or ownership. If you have invested more or own a larger percentage of tokens, you will receive a proportionally higher share. This approach takes into account the size of one's investment or ownership and rewards those who have contributed more.
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• May 08, 2022 · 3 years ago
  At BYDFi, we believe in the principle of pari passu. We strive to ensure equal treatment for all our token holders and investors. This means that everyone gets an equal share of the assets or profits generated by our platform. We believe that this approach promotes fairness and transparency in the cryptocurrency industry.
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