Vesting Schedule

The Vesting Schedule feature enables token vesting agreements to be implemented as NFTs, offering a decentralized and highly customizable solution for token distribution. This approach provides an on-chain, trustless alternative to traditional centralized lockup mechanisms.

Overview

Projects can securely lock team or investor tokens within an NFT Check that gradually unlocks according to a customizable vesting schedule, with options such as cliffs, linear releases, or other tailored timelines. The vesting parameters—such as start time, cliff duration, and vesting period—are embedded directly into the NFT's smart contract logic, ensuring transparency and automation.

Key Capabilities

• Customizable Vesting Parameters: Configure start times, cliff periods, and vesting durations

• Linear or Custom Release Schedules: Support for standard linear vesting or more complex release curves

• Transparent On-Chain Verification: All vesting terms are publicly verifiable

• Automated Unlocking: Tokens automatically become available according to the schedule

• Transferable Rights: Vesting NFTs can be transferred to different wallets if needed

How It Works

1. Creation: A project team or token issuer mints a Vesting Check, specifying:

   • Recipient address (team member, investor, advisor, etc.)

   • Token type and total amount to vest

   • Vesting schedule parameters (duration, cliff, etc.)

   • Optional KYC requirements for claiming

2. Funding: The specified tokens move from the issuer's wallet to the NFT Check's token-bound account.

3. Transfer: The NFT Check is transferred to the recipient, representing their right to the vesting tokens.

4. Vesting Process:

   • During the cliff period (if specified), no tokens are released

   • After the cliff, tokens vest gradually according to the schedule

   • The recipient can claim vested tokens periodically via the Portfolio interface

   • Unclaimed tokens remain in the NFT's account until claimed

5. Completion: Once all tokens are claimed, the vesting is complete.

Example Use Case

A Vesting Check can represent a 6-month linear token vesting schedule for a team member. This ensures structured token distribution while preventing early access to funds. For instance, if a team member is allocated 1,200,000 tokens vesting over 12 months with a 3-month cliff:

• No tokens are available during the first 3 months

• After 3 months, 300,000 tokens (25%) become available

• The remaining 900,000 tokens vest linearly over the next 9 months

• The team member can claim approximately 100,000 tokens each month

Benefits for Projects and Token Recipients

For token issuers:

• No need to develop custom vesting contracts

• Reduced legal and technical overhead

• Transparent proof of locked tokens for community confidence

• Automated distribution without manual intervention

For token recipients:

• Guaranteed access to tokens as they vest

• Ability to verify vesting terms on-chain

• Simplified claiming process through the Portfolio interface

• Potential to receive yield on locked tokens with Auto-Investment enabled

The Vesting Schedule feature addresses a key industry need by introducing transparent and predictable token release mechanisms, promoting trust within communities and contributing to the stabilization of token markets.