On October 24, when the platform restarted, WazirX reaffirmed its commitment to its users. The first set of steps under the Scheme was completed smoothly, as within 10 business days of reopening, eligible users received a First Distribution representing ~85% of their Approved Claims (valued as at the reference token pricing date), in accordance with the Scheme.

Following that, we have also taken the next major step, i.e., Recovery Tokens (RTs) have been allocated to eligible users within the 60-business-day timeline specified in the Scheme. Users can now view their RT holdings directly on their Funds page.

It’s important to note that RTs are not tradable at this stage. As outlined in the Scheme, RTs will be eligible for buyback by the Company in the future, subject to the availability of sufficient profits and recoveries of Illiquid Assets during the evaluation cycles under the Scheme.

Let’s understand what recovery tokens are and why it matters.

What Are Recovery Tokens (RTs)?

Under the Scheme, the Creditors will be issued Recovery Tokens on a pro-rata basis. In other words, each Scheme Creditor will be issued Recovery Tokens based on the proportion of their Approved Claim to the total value of all Approved Claims, ensuring a fair distribution among creditors.

With the issuance of RTs, users potentially stand to receive further recoveries from any additional value recovered or net profits made by the platform over time, in accordance with the terms of the Scheme.

As the RTs are allocated, the recovery process will move into recurring three-month periods. At the end of every period, the Company reviews the progress made toward recovering assets. If at least USD 10 million in unencumbered value has been realized (from illiquid assets, shared surpluses, or other recoveries outlined in the Scheme), a portion of that amount is set aside to buy back RTs from holders. This becomes the next distribution for users.

If the value recovered in a period is less than USD 10 million, it isn’t lost; it simply rolls over into the next period and is combined with new recoveries until a distribution becomes viable.

Additionally, subject to legal and regulatory requirements, RTs may also become tradable. This may allow Scheme Creditors to trade RTs to exit the Scheme early by selling their entitlement to future recoveries. Conversely, people who are confident in future recoveries can purchase additional RTs in the hope of receiving greater recoveries.

Why Do Recovery Tokens (RTs) Matter?

• Fair and proportional for every user

Recovery Tokens are allocated based on each user’s Approved Claim, ensuring everyone receives a proportional share of future recoveries. There are no special preferences and no subjective decisions in this allocation. It’s a transparent system that treats every user equally.

• You remain part of every future milestone.

Recoveries often happen over time, not all at once. RTs make sure you stay included throughout the journey. Whenever future recoveries happen, RT holders benefit, ensuring you don’t miss out on any progress made later.

How Will Recovery Tokens Be Allocated?

Here’s a simplified example, only for illustrative purposes, to understand how RTs are being allotted:

• As of July 18, 2024, Priya (a Creditor) had a total claim of $10,000 in the WazirX platform.
• $546 million is the Total Claims as of July 18, 2024, 1:00 PM IST.
• A total of 1 billion Recovery Tokens will be distributed among Creditors.
• Claim % Calculation is the formula that calculates how much percentage of the total claim belongs to Priya.
• RT Allocation: (Creditors’ Claim % * Total Recovery Tokens)

This formula calculates how many RT Priya will be allotted.

After all the calculations, Priya will be allotted 18,315.0183 RT.

​

What Does This Mean for You?

If you are an eligible Scheme Creditor, Recovery Tokens make sure that:

• You remain included in future recoveries.
• You receive additional value whenever recoveries meet distribution thresholds.
• You may have more flexibility if RT trading becomes available.
• You benefit from the platform’s progress throughout the recovery period.
• RTs ensure that your claim is included in every meaningful recovery event, fairly and transparently.

How to View Your Recovery Tokens (RTs)?

Open the WazirX app and go to the ‘Funds’ section. You can see your allocated Recovery Tokens.

A Step Forward for the Community

The Recovery Token allocation marks an important milestone for WazirX and its users. With the platform restart successfully completed, the First Distribution delivered, and RTs now issued to all eligible users, we’ve taken another major step outlined in the Scheme, on time and with full transparency.

You can already see the allocated RTs on the Funds page in the app, and as the process moves forward, RTs will play a central role in how eligible amounts are allocated.

This step reflects our commitment to keeping users at the heart of everything we do as we move forward. The key steps have been completed, RTs have been allocated, and the next chapter is officially underway.