What is the difference between pro rata and pari passu in the context of digital currencies?

3 answers

• Feb 18, 2022 · 3 years ago
  In the context of digital currencies, pro rata refers to the proportional distribution of assets or rights among the holders. It means that each holder will receive a share that is proportionate to their existing holdings. For example, if there is a pro rata distribution of a new token, holders will receive a certain number of tokens based on the percentage of tokens they already hold. This ensures a fair distribution of assets and avoids favoring certain individuals or entities.
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• Feb 18, 2022 · 3 years ago
  Pari passu, on the other hand, means that all holders of a particular digital currency have equal rights and rank equally in terms of priority. This term is often used in the context of debt or investment contracts. In the digital currency space, pari passu ensures that all holders have the same level of access to the benefits and features of the currency. It prevents any discrimination or preferential treatment among the holders.
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• Feb 18, 2022 · 3 years ago
  From a third-party perspective, BYDFi, a digital currency exchange, follows the principle of pari passu in its operations. This means that all users on the platform have equal rights and access to the services provided. BYDFi ensures a fair and transparent trading environment for all participants, regardless of their holdings or trading volumes.
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