NFT Redemption

Redemption: The Inscription Redemption feature in Ordi Launch allows users to redeem a non-specific Inscription from a particular collection by burning 1,000,000 µ-Tokens. For instance, if a user has 1,000,000 µBAYC tokens, they can redeem an Inscription from the Onchain Monkey collection. Upon redemption, these µ-Tokens are permanently burned, and a randomly selected Inscription from the OCM Vault is transferred to the user's wallet.

Element of Randomization: This feature introduces an element of anticipation by randomizing the Inscription that users receive upon redemption. Similar to the experience of minting Inscriptions, it adds surprise and excitement to the Ordi Launch experience. Random redemption offers users a chance to exchange their deposited Inscription for a potentially more desirable one from the Vault.

Dynamic Fee Structure: The redemption fee is in µ-Tokens and scales with the Reserve Ratio; the fee increases as the Reserve Ratio % decreases, aiming to sustain the system's viability. However, when the Reserve Ratio of the Vault falls below 20%, redeeming from the vault becomes unavailable. For specific fee rates, please refer to the Dynamic Fees Page.

Diversification in the Vault: The randomized redemption process promotes a diversified pool of Inscriptions within the Vault. By ensuring that the redeemed Inscriptions are randomly selected, it prevents the monopolization of specific, high-demand traits, fostering a more balanced and diversified ecosystem.

Depositing Inscriptions in the Vault: Accumulate Vault Contribution Quota whenever you deposit an Inscription of that specific collection in the vault which expires every 5 days and extends whenever you vault one. These Vault Contribution Quota can be used to waive redemption fees. For a specific breakdown, please refer to Dynamic Fees.

Reserve Ratio and Vault Contribution Quota:

• 30% -> 100% Reserve Ratio: 1 Quota

• 20% -> 29% Reserve Ratio: 2 Quotas

• 10% -> 19% Reserve Ratio: 4 Quotas

• 1% -> 9% Reserve Ratio: 8 Quotas

Reserve Ratio Limitations: When the Reserve Ratio (RR) is below 20%, normal redemptions are paused, and users have to bid in µ-Tokens to redeem Inscriptions from the Vault.

• Reserve Ratio < 20%: 1 Auction per 3 Hours

• Reserve Ratio < 15%: 1 Auction per 6 Hours

• Reserve Ratio < 10%: 1 Auction per 12 Hours

• Reserve Ratio < 5%: 1 Auction per 24 Hours