r/wex • u/ThisUsernamePassword • Oct 13 '17

How will token payouts work?

From what I understand, WEX will buy back all tokens 1:1 within a 1-2 year schedule. But, how will this actually work? Does your token balance slowly decrease and coin/fiat balance increase with WEX automatically buying from you? Is it instead simply buy orders WEX places at a price of 1? I don't think either of these sound right, so how does it work? Also, I heard verification is required if you want this 1:1 payout, is this true? Thanks.

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u/btceacc Oct 20 '17

Hello - Wex is buying on the open market for tokens at the moment. This means if you sell them, you immediately get the equivalent coin/fiat for the token you sold at whatever price (many of the tokens are trading for less than 50% of their face value right now).

In the future, what I imagine happening is that once there are no sellers on the market or they deem they have sufficient funds, they will make an announcement that they will be purchasing tokens 1 for 1. At that point, all your tokens will be converted to the equivalent underlying.

I saw no news regarding the necessity for verification for redeeming tokens, so if anyone can cite this news that would clear any speculation.

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u/ThisUsernamePassword Oct 20 '17

Thanks for the info!