> For the complete documentation index, see [llms.txt](https://oxoa-network.gitbook.io/oxoa-network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://oxoa-network.gitbook.io/oxoa-network/oxoa-blockchain/tokenomics/the-process-of-redemption.md).

# The Process of Redemption

The redemption process offers flexibility for exchanging between $OXOA and $isOXOA in either direction, and the rules depend on the redemption's direction.

1. **Redeeming $OXOA for $isOXOA:**

When redeeming $OXOA for $isOXOA, there are no penalties or restrictions, and the conversion ratio remains a constant 1:1 (100%).

2. **Redeeming $isOXOA for $OXOA:**

Redeeming $isOXOA for $OXOA involves an unlock period, with users choosing the duration. The conversion ratio increases proportionally with the redemption duration:

a 7-day duration results in a 1:0.1 ratio (10%)

a 30-day duration yields a 1:0.3 ratio (30%)

a 60-day duration offers a 1:0.5 ratio (50%)

a 90-day duration results in a 1:0.75 ratio (75%)

a 120-day duration results in a 1:1 ratio (100%) 

**When users stake $isOXOA into the conversion pool, the APY they receive is 10%.**

If the selected duration is less than the maximum, a penalty amount of $isOXOA is burned. Users have the freedom to cancel any $isOXOA redemption process at any time, nullifying the entire process and recovering their entire $isOXOA amount without receiving any $OXOA. 

The OXOA Foundation may reserve up to 50% of the potentially burned $isOXOA to support the Network. During the redemption of $isOXOA for $OXOA, all $isOXOA is automatically directed to the yield account, but only for 50% of its value.