Phenom Tokens may be redeemed at any time in the Phenom Poker app in exchange for stablecoin (USDT). The price-per-token is set weekly and is based on the revenues generated during the prior 4 week period using the following formula
( 130 x Net rake collected over prior 4 weeks / Outstanding tokens )
For example:
In the prior 4 weeks, Phenom Poker generates $800,000 in net rake.
This would result in a price of $2.08/token (130 x 800000 / 50000000)
Initial price caps and rules
We’ve decided to implement price caps during the first 4 months of Phenom Poker’s existence. This will help protect against the above scenario and give the Treasury more time to build additional reserves should user growth be faster than anticipated.
At Public Launch, the token price will be $0.50 and remain at that price until the price automatically sets in week 5. This method reduces volatility and increases fairness for token holders. Since price is tied directly to revenue, redeeming tokens has no effect on price at all. As a token holder, you know that if the site revenue grows, so will the value of your tokens, along with your revenue share payments. You don’t have to worry about insiders or anyone else “dumping” tokens and crashing the price. You also don’t have to worry about some unforeseen market condition affecting the price either (for example if the crypto market crashes unexpectedly).
Large holder rule
As an additional measure to protect the Treasury, we're also implementing the following hard-coded rule for large redemptions:
Token redemptions for any single holder during any 30-day period cannot exceed 20% of the treasury