Token Vesting
Learn more about how token vesting works for particpants in LBPs on Fjord.
Last updated
Learn more about how token vesting works for particpants in LBPs on Fjord.
Last updated
Token Vesting in Fjord V2: A Quick Overview
Token vesting in Fjord V2, facilitated through Sablier, is a process where your tokens are gradually released over a set period after participating in a Liquidity Bootstrapping Pool (LBP). Post-LBP, a unique NFT representing your token vesting schedule is created. This NFT, along with the complete vesting timeline, can be viewed through a live link on Sablier's platform, ensuring transparency and ease of tracking your vested tokens.
Why buy into a Vested Token LBP Buying Tokens for Long-Term Support: Vesting offers participants access to tokens, sometimes at a discounted rate in exchange for their long-term commitment. This arrangement incentivises and rewards sustained support for the project. Alignment with VC Methods: Token vesting reflects strategies commonly used by venture capitalists (VCs) in supporting new projects. It embodies a strategic approach similar to how VCs back promising ventures in their early stages, allowing participants to be part of a project's growth and development
On the live LBP page, above the price chart you will find information confirming whether or not the LBP has vesting associated with it. If it does it will show as 'Enabled'.
To review the vesting terms for an LBP, head to the additional details section below the chart, expand the section that references token vesting.
Token Vesting: This feature is activated, indicating that tokens will be released over a set period rather than all at once.
Vesting Schedule: Displays key dates and times for the vesting period's start and end, aligned with the LBP's conclusion.
Vesting Cliff: Shows if a cliff is set, a specific time when the token distribution begins.
Sablier Streaming: At the LBP's end, you can view your token vesting stream NFT on Sablier, providing a transparent and live tracking method for your vested tokens.
At the end of the LBP you will need to redeem your purchased tokens.
Once that is complete you can then view your Vesting Contract on Sablier by clicking the button below 'Redeem Tokens'. This will take you to the Sablier app where you will need to connect your wallet, at which point you will be able to view your vesting streams:
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.
