On a quarterly basis, Hedera will calculate and report the Prior Period Sales on its website and/or in another publicly accessible manner, similar to how monthly distributions are currently reported on the Hedera website.
Hedera will designate an account as the “Bonus Allocation Account.” Early each quarter, expected to begin in the fourth quarter of 2020, Hedera will transfer into the Bonus Allocation Account the number of hbars equal to 10% of the Prior Period Sales. Hedera will distribute hbars from the Bonus Allocation Account in one or more distributions, all of which will be made within the same quarter. (For example, if Hedera sells 1,000,000 hbars in Q1 2021, in early Q2 2021, Hedera will (i) provide a report stating that 1,000,000 hbars were sold, (ii) transfer 100,000 hbars into the Bonus Allocation Account, and (iii) distribute all 100,000 hbars from the Bonus Allocation Account in one or more distributions to be made by the end of Q2 2021, with each such distribution made pro rata to the SAFT holders that accept the Offer as described in response to "How many hbars will my new SAFT give me the right to receive?".)
At the time of each distribution, Hedera will calculate the dollar value of the distribution based on the 30-day trailing average price of hbars (or the spot price, if Hedera commences daily distributions) on CoinMarketCap.com or another third-party source that we determine to be reliable. That dollar value per hbar at the time of distribution will be reported in the same manner as the Prior Period Sales, enabling both Hedera and the SAFT holders to calculate the total value of each distribution, and to determine the cumulative value being applied against the Bonus Allocation “cap.”