Can someone explain the t-mobile uncarrier plan 4.0?

mybaby

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I have a verizon basic phone and i was actually planning on switching to t-mobile once my contract is over and buy a smartphone.
i understand that the uncarrier 4.0 would get rid of the early termination fee that the verizon contract binds in me. and that i have to give them my current phone for credit. thats it... so i have a few questions

does the current phone that i have to turn in have to be a smartphone?
what is the credit for the phone turned in used for? is it to cover the ETF or to pay for part of the new phone i have to buy?

thanks guys<3
 
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