In early 2020, Hedera offered its SAFT purchasers the option to exchange their original SAFTs for ones that would include additional hbar distributions that, over time, would cumulatively match the USD value of the SAFT holders’ original SAFT purchase amounts.
Under to the SAFT Exchange Offer, each participant agreed to receive:
- Distributions of the remaining portion of the participant’s original SAFT hbar allocation; and
- Additional “bonus” hbar distributions until the cumulative value of those bonus distributions, measured at the time of distribution, equals the USD value of the participant’s original SAFT purchase amount.
Since March 17, 2020, all Hedera SAFT holders who accepted the SAFT Exchange Offer have been receiving quarterly hbar distributions.
Today, Hedera is pleased to announce that it will be providing a final, lump-sum distribution to all SAFT exchange offer participants, fulfilling Hedera’s obligations under those SAFTs.
The final distribution to SAFT exchange offer participants will be in the amount of hbars equal to the remaining balance (in USD), calculated based on the lesser of the trailing 30-day average close price of hbar on coinmarketcap.com as of February 11, 2025 and the closing price on February 11, 2025. In each case we have rounded the original SAFT purchase price up to the next dollar.
Hedera is planning to make the final distribution on February 16, 2025. Those who pause distributions or request distribution to a new wallet will have a delay until the matter is resolved and wallets have been tested.
One of the most common questions we receive from SAFT holders is about the timing of their final distribution. While the Exchange Offer doesn't provide a fixed date—since minimum distributions are based on prior period sales—accelerating the distributions by making this final lump-sum payment on February 16, 2025 provides a definitive answer to that question.
As we mature our operations, this final distribution will also enable the Hedera Council to reduce administrative overhead related to quarterly calculations and distributions of the SAFT bonus distributions, and focus on forward-looking activities beneficial to the Hedera network.
The bonus allocation table shows all bonus distributions made through Q4 2024, with the final distribution reflected by end of Q1 2025, at which point Hedera’s obligations to SAFT exchange offer participants will be fully satisfied.
Hedera would like to take this opportunity to thank every SAFT exchange offer participant for their support of Hedera.