Token Vesting
Learn more about how to set up token vesting on Fjord for creators and how it works.
About Token Vesting
As we introduce Fjord V2, we're excited to feature integrated token vesting capabilities through a partnership with Sablier, the leading platform for secure vesting streams in the industry.
Token Vesting with Sablier:
Sablier's Lockup Linear vesting contracts are elegantly straightforward. They allow for a constant and predictable flow of tokens to recipients over time, visualised as a straight, ascending line on a graph. This means that over the duration of the vesting period, the same amount of tokens is released per second, providing clarity and simplicity for both project creators and recipients.
Understanding Cliffs:
To offer even greater control, we've incorporated the ability to set a "cliff" within these vesting contracts. A cliff acts as a threshold that must be reached before any tokens are released. Until this point is reached, the tokens accumulate but remain inaccessible. Once the cliff is passed, the accrued tokens become available, and new tokens continue to stream at the predetermined rate.
This mechanism is perfect for creators looking to establish a vesting schedule that aligns with project milestones or employee tenure. For example, you might set a 1-year cliff, after which linear vesting continues for 3 years.
Visit Sabliers website to learn more
How to set up Token Vesting on Fjord
Setting up token vesting for your project on Fjord is a seamless part of the LBP creation process and is the 4th step in the creation flow. Here's how you can do it:
Choose Vesting Option:
Within the LBP creation process, you'll find the option to configure token vesting under step 4.
Decide if you'd like to enable vesting by selecting 'Yes' for vesting or 'No' if you prefer the tokens to be liquid. If you click yes, continue through the steps below.
Review End Date:
Confirm the start date for vesting, which is automatically set to begin after the LBP concludes.
Note: The vesting start date is determined by the end of the LBP and is not editable unless you change when the LBP ends.
Set the Cliff Date (Optional)
a. If you don't want a cliff
If you do not wish to set a cliff and instead have a linear stream once the LBP ends, click No.
b. If you do want a vesting cliff
If you do wish to set a cliff and have proportion of tokens unlock at a certain time in the future, click yes.
Next, you'll need to set a cliff date, which is the point in time when the first portion of tokens begins to be accessible.
The cliff date must be set for a time after the conclusion of your LBP and should be a minimum 1 hour if enabled.. The system will display the duration from the end of the LBP to the cliff date for clarity.
Determine the Vesting Period:
After setting the cliff, you'll define the total vesting period—this is the timeframe over which the tokens will be distributed to your wallet.
The system automatically calculates the total duration from the end of the LBP to the final vesting conclusion, providing you with the full timeline of token release.
Post LBP, what happens?
As you finalise the setup of your token vesting terms within your Liquidity Bootstrapping Pool, it’s important to note the simplicity and automation that comes with using Sablier for this process. Once you’ve determined the vesting terms, there’s nothing more required from you as the creator, except to call the close function as discussed elsewhere in our docs at the conclusion of the LBP. Participants will then need to visit, app.sablier.com to access the vested token stream. The vesting terms and link to Sablier are provided on the live LBP page in the 'Details' section.
The tokens are automatically streamed to the buyer via through the Sablier contracts once the vesting period begins. This means no manual disbursements or administrative oversight is needed on your part—the smart contracts handle it all.
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