Yikes! Thanks for sharing.

It's a bad sign for the crypto community that the market doesn't demand better terms. You can debate price forever but nobody should argue for misaligned incentives.

I'd prefer projects like this go one step further and destroy the bitcoin invested up-front. It doesn't make sense to do ex post (now in this case), but ex ante it signals a commitment to the new coin and a genuine bet on its future value.

Full disclosure: I hold some bitcoin, so other people destroying theirs might benefit me ever so slightly :)