Understanding Flying Tulip's Refund Mechanism 🧵
When you participate in the @flyingtulip_ sale, you don’t receive freely tradable $FT immediately.
Instead, you mint an FT NFT that wraps your allocation and embeds a standing redemption right (the Perpetual PUT).
Think of it as an onchain wrapper that holds:
• Your allocated FT tokens
• The right to redeem your original capital at par
You have three choices:
1️⃣ Hold
Keep your FT inside the Perpetual PUT. You participate in token upside while retaining the right to redeem later.
2️⃣ Redeem
At any time, burn your FT tied to your original contribution and redeem your original asset at par. Redeemed FT is destroyed.
3️⃣ Unlock & Trade
Withdraw your FT from the PUT-protected pool. You forfeit the redemption right, your capital is released to the protocol, and FT becomes freely tradable.
Participants retain the option to redeem under the protocol’s rules for as long as their tokens remain within the Perpetual PUT structure. You can exit as little or as much as you want, whenever you want.
Note: FT tokens purchased on the open market do not carry the redemption right. Only primary contributors do.
Sale opens Monday: coinlist.co/flying-tulip
