> For the complete documentation index, see [llms.txt](https://docs.neokingdom.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.neokingdom.org/tokenomics/neok-substance/neok-disposal.md).

# NEOK Disposal

NEOKingdom DAO AoA and SHA enforce a set of rules on the disposal of NEOK. Those rules depend on the holder’s classification:

1. Contributors are obliged to offer NEOK to other contributors with a fixed price of 1 NEOK = 1 EUR before offering NEOK to the secondary market. However, if a contributor is unable to sell NEOK on the secondary market too (i.e., the inner market between contributors and the secondary market are in failure), it has the right to redeem a limited number of NEOK against NEOKingdom DAO through a specific procedure. Such redeemed NEOK is burnt. NEOKingdom DAO will execute the payment from a Trustworthiness Reserve that is filled from annual profit;
2. Investors, impact investors, and traders do not have the right to acquire tokens from contributors with a fixed price of 1 NEOK = 1 EUR, and they have no right to redeem NEOK against NEOKingdom also, but they have the freedom to sell their NEOK freely whenever they want with whatever price they want on the secondary market. There are no vesting or similar rules related to NEOK unless specifically negotiated with an impact investor.

This approach gives contributors a certain security against short-term market failures while preserving the classical logic that investors/traders bear more financial risk but also always have the possibility to exit at their chosen time with chosen price.


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