SURGE Is a perpetual preferred tokenized share of LSTR. Let's break each word of this sentence down:
- Perpetual because SURGE's yield never ends. If you hold it forever, you get paid yield until you convert it to LSTR
- Tokenized because it is a token on a blockchain(s)
- Preferred because it lives at the top of the preference stack. This means that 1 SURGE = $1 no matter what. In the unlikely event of the LeoStrategy fund dissolving, SURGE holders get paid back FIRST and FOREMOST at the stated value of $1 per SURGE. This creates a floor price for SURGE at $1 (but no capped upside - SURGE can trade at $2, $3 or even $30 based on the LSTR price appreciating)
In short, SURGE is a convertible note on the LSTR token. 1 SURGE = 0.02 LSTR and this means that as LSTR's price rises, SURGE's price rises as well.
What happens now that LSTR is not yet $50, if the SURGE presale finishes today, will the SURGE:LSTR pool still trade for 1SURGE to 0.02 LSTR?