WazirX has wrapped up the distribution of its Recovery Tokens to every user who qualified under the court‑approved plan.
What the Allocation Means
After restarting the platform on 24 October, the exchange moved about 85% of its rebalanced net liquid assets to eligible users within just 10 business days. The full token allocation was completed within the 60‑day window set by the scheme.
How Tokens Are Assigned
Each eligible user receives Recovery Tokens (RTs) in proportion to their approved claim. The tokens act like a share of any future money the platform recovers.
- Claims are reviewed every three months.
- If at least US$10 million is recovered in a period, part of that amount is used to buy back RTs.
- If the recovery is below US$10 million, the claim rolls over to the next period.
Viewing Your Tokens
Users can see their allocated RTs on the Funds page inside the WazirX app.
Future Trading Possibility
Today, Recovery Tokens cannot be bought or sold on any exchange. They may become tradable later, subject to legal and regulatory approval.
Simple Example
As of 18 July 2024, total claims on the platform amounted to US$546 million. One billion RTs are being issued.
Suppose a creditor named Priya has a claim of US$10,000. Her share of the total claim is calculated, then multiplied by the one‑billion tokens:
- Priya’s claim percentage = (10,000 / 546,000,000) ≈ 0.00183%
- RTs allocated to Priya = 0.00183% × 1,000,000,000 ≈ 18,315.02 RTs
Key Takeaway
The token distribution ensures that every creditor holds a proportional stake in any future recoveries, keeping the process fair and transparent.
Disclaimer
Remember, this is just an overview, not financial advice. Do your own research and consider your own situation before making any decisions.