Vesting Schedule and Release
Vesting Overview
The $VESTO token incorporates a carefully designed vesting schedule to ensure price stability, align long-term incentives, and prevent market volatility. This document outlines the detailed vesting parameters for each token allocation category.
Initial Token Generation Event (TGE)
At the Token Generation Event, only a small fraction of the total token supply will be immediately circulating:
| Allocation Category | Initial Unlock at TGE | Tokens Released at TGE |
|---|---|---|
| Governance Treasury | 10% | 250,000 |
| Pre-sale | 10% | 220,000 |
| Team & Advisors | 0% | 0 |
| Ecosystem Development | 5% | 75,000 |
| Marketing & Partnerships | 10% | 170,000 |
| Liquidity Provision | 100% | 300,000 |
| Total | 10.15% | 1,015,000 |
Detailed Vesting Schedules
Governance Treasury (2,500,000 tokens)
- 10% unlocked at TGE: 250,000 tokens
- 90% locked: 2,250,000 tokens
- Vesting period: 36 months linear vesting
- Monthly release: 62,500 tokens
- Purpose: Ensure long-term governance resources
- Management: Initially by core team, transitioning to DAO governance
Pre-sale (2,200,000 tokens)
- 10% unlocked at TGE: 220,000 tokens
- 90% locked: 1,980,000 tokens
- Progressive vesting schedule:
- 15% released at the end of Month 1: 330,000 tokens
- 25% released at the end of Month 2: 550,000 tokens
- 50% released linearly over Months 3-6: 1,100,000 tokens (approximately 275,000 tokens per month)
- Purpose: Initial capital for development and operations
Team & Advisors (1,800,000 tokens)
- 0% unlocked at TGE: 0 tokens
- 100% locked: 1,800,000 tokens
- Cliff period: 12 months (no tokens released)
- Vesting period after cliff: 24 months linear vesting
- Monthly release after cliff: 75,000 tokens
- Allocation split:
- Core Team: 1,300,000 tokens
- Advisors: 300,000 tokens
- Future Team Members: 200,000 tokens
Ecosystem Development (1,500,000 tokens)
- 5% unlocked at TGE: 75,000 tokens
- 95% locked: 1,425,000 tokens
- Vesting period: 48 months (quarterly releases)
- Quarterly release: ~74,219 tokens
- Purpose: Fund ecosystem growth, integrations, and cross-chain expansion
- Governed by: Protocol governance votes after initial phase
Marketing & Partnerships (1,700,000 tokens)
- 10% unlocked at TGE: 170,000 tokens
- 90% locked: 1,530,000 tokens
- Vesting period: 24 months (quarterly releases)
- Quarterly release: ~191,250 tokens
- Purpose: Strategic partnerships, market expansion, and user acquisition
- Internal allocation:
- Strategic Partnerships: 800,000 tokens
- Marketing Campaigns: 400,000 tokens
- Community Incentives & Airdrops: 500,000 tokens
- Airdrop details: Specific allocation and distribution schedule to be announced prior to the airdrop event
Airdrop Program (Part of Marketing Allocation)
- The community airdrop program will be funded from the Marketing & Partnerships allocation
- Specific token amounts and distribution details to be announced prior to the airdrop launch
- Target recipients: Testnet participants, early community members, and campaign participants
- Vesting schedule: To be determined based on market conditions and community growth at the time of distribution
- The airdrop is designed to reward community engagement while maintaining token price stability
Liquidity Provision (300,000 tokens)
- 100% unlocked at TGE: 300,000 tokens
- Allocation purpose: Establish deep liquidity on DEXs
- Initial DEX distribution:
- Primary Optimism DEX: 200,000 tokens paired with equivalent value
- Secondary DEXs: 100,000 tokens distributed across other platforms
- Liquidity lockup: Minimum 12 months commitment for protocol-owned liquidity
Token Release Schedule
The following table illustrates the token release schedule over time:
| Timeframe | Newly Released Tokens | Cumulative Released | % of Total Supply |
|---|---|---|---|
| TGE | 1,015,000 | 1,015,000 | 10.15% |
| Month 1 | 330,000 | 1,345,000 | 13.45% |
| Month 2 | 550,000 | 1,895,000 | 18.95% |
| Month 3 | 275,000 | 2,170,000 | 21.70% |
| Month 4 | 275,000 | 2,445,000 | 24.45% |
| Month 5 | 275,000 | 2,720,000 | 27.20% |
| Month 6 | 275,000 | 2,995,000 | 29.95% |
| Month 12 | 737,500 | 3,732,500 | 37.33% |
| Month 13 | 150,000 | 3,882,500 | 38.83% |
| Month 24 | 1,950,000 | 7,720,000 | 77.20% |
| Month 36 | 937,500 | 9,057,500 | 90.58% |
| Month 48 | 942,500 | 10,000,000 | 100.00% |
Vesting Implementation
The vesting schedule will be implemented through smart contracts with the following characteristics:
- Transparent: All vesting contracts will be verifiable on-chain
- Immutable: Vesting parameters cannot be changed after deployment
- Non-custodial: Tokens are allocated directly to vesting contracts at TGE
- Linear Release: Tokens unlock continuously rather than in large batches
- Emergency Provisions: Limited escape hatches for critical security issues only
Buyback and Burn Schedule
To supplement the vesting schedule and support token value:
- A $20,000 buyback will be conducted following the airdrop distribution phase
- Ongoing buybacks using 15% of protocol fee revenue
- Quarterly scheduled buybacks announced in advance
- Special buybacks during high volatility periods
- All bought-back tokens to be provably burned or added to the governance treasury
Circulating Supply Management
The protocol will actively monitor circulating supply metrics:
- Monthly reports on token unlocks and circulating supply changes
- Liquidity depth analysis across trading venues
- Vesting progress tracking for all allocation categories
- Price impact analysis for anticipated unlocks
This structured and transparent approach to token vesting ensures the $VESTO token can maintain stability while gradually increasing circulating supply in alignment with protocol growth and market conditions.