Redemption
Give up a token claim. Receive 98% of its gross reserve share.
Redemption removes surrendered FOLD from the outstanding claims and transfers a proportional reserve payout. It is different from selling FOLD into a liquidity pool. The browser pays an asset basket; the contract reference pays native ETH only.
The calculation
gross = floor(amount × assetReserve / effectiveSupply)
net = floor(gross × 9800 / 10000)
retained = gross − netThe browser applies this calculation separately to ETH and every stock unit in the reserve. Two percent and integer rounding remain in each asset. The reward balance, operations and LP inventory are not included.
A basket example
At reset, surrendering 100 million out of 1 billion FOLD gives a 10% gross share of the opening basket. The net payout is:
| Asset | Gross share | Net payout |
|---|---|---|
| ETH | 6 | 5.88 |
| AAPL | 20 | 19.6 |
| MSFT | 12.5 | 12.25 |
| NVDA | 50 | 49 |
The payout is worth $29,400 at the opening sample prices. Those stock units arrive in the sample wallet as stock units, not as $29,400 in cash.
The native-ETH reference
With 100 ETH and 1 billion outstanding tokens, surrendering 100 million pays 9.8 ETH. Afterward, 900 million outstanding tokens share 90.2 ETH. ETH per remaining token rises in this example; dollar value and the market price can still fall.
- Approve the exact FOLD amount intended for redemption.
- Use a fresh quote, minimum ETH amount and transaction deadline.
- The treasury attempts bounded collection of credited native-ETH fees; collection failure leaves the existing pot usable.
- Tokens move permanently to the dead address and ETH is paid to the recipient.
- If protection checks or either transfer fail, the transaction reverts. A failed on-chain transaction can still cost gas.
These steps describe the Solidity reference. The public basket app does not request a token approval or submit a redemption transaction.
Effective supply and the last exit
For the ETH reference, effective supply includes market inventory, liquidity and locked allocations. It excludes tokens at the dead address and stray tokens at the treasury. Sending tokens directly to the treasury forfeits them without paying you; it is not redemption.
Once all effective outstanding tokens have been surrendered, retained ETH is inaccessible forever. There is no administrator recovery path. In the browser, only unstaked FOLD is available to redeem; unstake first if necessary.