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Once the divestment threshold is reached the Rebellion investment fund automatically divests the asset.
An investment can also be divested if the DAO decides so, simply by making a proposal to divest a project, even if the threshold is not reached.
In order to protect the wealth of the Rebellion, the team is entitled to divest any project (without having reached the threshold or been decided by the DAO), provided the value of an investment position falls by more than 25% in 24 hours.
This process has been put in place in case of a massive sell-off in the market. This allows the Rebellion investment fund to quickly sell-off an investment(s) and retain profits.
When a divestment event takes place divested funds are used as follow:
- 70% is sent to the REBL Investment Wallet with the aim to be reinvested
- 20% is used for $REBL token purchase & burns (may be over a certain period of time)
- 10% Dividends airdrops
- 8% to REBL DAO NFT holders (pro rata their NFT holdings)
- 2% to the Protector who proposed the investment
An investment, once divested, must return at least 1.5x of initial investment for the Protector (who proposed the investment) to receive his dividend. Otherwise his dividend is burned.
If an investment, once divested, returns less than 1.0x of initial investment, the entire sum received from the divestment event is returned to the Investment Wallet. This means no tokens are burned and no dividends are distributed.