Vesting & Unlock Schedules

Token vesting is a critical mechanism for ensuring long-term alignment, reducing sell pressure, and maintaining healthy token economics. use.com implements comprehensive vesting schedules across all token categories, with carefully designed unlock timelines that balance stakeholder interests with market stability.

Vesting Overview

Purpose of Vesting

Key Objectives:

1. Alignment: Ensure long-term commitment from all stakeholders

2. Stability: Prevent sudden supply shocks and price volatility

3. Fairness: Protect later investors from early dumping

4. Sustainability: Support gradual, healthy token distribution

Benefits:

• Reduced sell pressure at launch

• Predictable supply schedule

• Long-term stakeholder alignment

• Market confidence and stability

Vesting Terminology

Key Terms:

Term	Definition
Cliff	Period with zero token unlocks
Linear Vesting	Gradual unlock at constant rate
TGE	Token Generation Event (launch)
Unlock	Tokens becoming available for transfer
Vesting Period	Total time until full unlock

Category-by-Category Breakdown

1. Public Sale (15% - 150M tokens)

Vesting Structure: 20% at TGE, 6-12 month linear vesting

Standard 12-Month Vesting:

Month	Monthly Unlock	Cumulative %	Tokens Unlocked
0 (TGE)	20%	20%	30,000,000
1	6.67%	26.67%	40,000,000
3	6.67%	40%	60,000,000
6	6.67%	60%	90,000,000
9	6.67%	80%	120,000,000
12	6.67%	100%	150,000,000

Vesting Formula: $Unlocked_{month} = TGE\_Amount + \frac{(Total - TGE\_Amount) \times month}{Vesting\_Period}$

Example (10,000 token purchase):

• TGE: 2,000 tokens

• Remaining: 8,000 tokens

• Monthly: 8,000 / 12 = 666.67 tokens

• Month 6: 2,000 + (666.67 × 6) = 6,000 tokens

Visualization:

Month 0:  ████░░░░░░░░░░░░ 20%
Month 3:  ████████░░░░░░░░ 40%
Month 6:  ████████████░░░░ 60%
Month 9:  ████████████████ 80%
Month 12: ████████████████████ 100%

2. Private Sale (10% - 100M tokens)

Vesting Structure: 10% at TGE, 6-month cliff, 12-month linear vesting

Timeline:

Month	Monthly Unlock	Cumulative %	Tokens Unlocked
0 (TGE)	10%	10%	10,000,000
1-6	0%	10%	10,000,000
7	7.5%	17.5%	17,500,000
12	7.5%	55%	55,000,000
18	7.5%	100%	100,000,000

Vesting Formula:

$$\begin{aligned} Unlocked_{month} &= TGE_{Amount} && (month \le 6) \\ Unlocked_{month} &= TGE_{Amount} + \dfrac{R\,(month-6)}{12} && (month > 6) \end{aligned}$$

Example (100,000 token allocation):

• TGE: 10,000 tokens

• Cliff (Months 1-6): 0 tokens

• Month 7: 10,000 + 7,500 = 17,500 tokens

• Month 12: 10,000 + (7,500 × 6) = 55,000 tokens

• Month 18: 100,000 tokens (fully vested)

Visualization:

Month 0:   ██░░░░░░░░░░░░░░░░░░ 10%
Month 6:   ██░░░░░░░░░░░░░░░░░░ 10% (Cliff ends)
Month 12:  ███████████░░░░░░░░░ 55%
Month 18:  ████████████████████ 100%

3. Team & Advisors (20% - 200M tokens)

Vesting Structure: 12-month cliff, 36-month linear vesting

Timeline:

Month	Monthly Unlock	Cumulative %	Tokens Unlocked
0-12	0%	0%	0
13	2.78%	2.78%	5,555,556
24	2.78%	33.33%	66,666,667
36	2.78%	66.67%	133,333,333
48	2.78%	100%	200,000,000

Vesting Formula:

$$Unlocked_{month}= \begin{cases} 0 & \text{if } month \le 12 \\ \dfrac{Total\,(month-12)}{36} & \text{if } 12 < month \le 48 \\ Total & \text{if } month > 48 \end{cases}$$

Rationale:

• 12-month cliff ensures commitment through launch

• 36-month vesting aligns with long-term success

• Standard for crypto projects

• Protects against early team departures

Example (1M token allocation):

• Months 0-12: 0 tokens

• Month 24: 333,333 tokens

• Month 36: 666,667 tokens

• Month 48: 1,000,000 tokens

Visualization:

Month 0-12: ░░░░░░░░░░░░░░░░░░░░ 0% (Cliff)
Month 24:   ████████░░░░░░░░░░░░ 33%
Month 36:   ████████████████░░░░ 67%
Month 48:   ████████████████████ 100%

4. Ecosystem & Development (25% - 250M tokens)

Vesting Structure: 5% at TGE, 60-month linear vesting

Timeline:

Month	Monthly Unlock	Cumulative %	Tokens Unlocked
0 (TGE)	5%	5%	12,500,000
12	1.58%	24%	60,000,000
24	1.58%	43%	107,500,000
36	1.58%	62%	155,000,000
48	1.58%	81%	202,500,000
60	1.58%	100%	250,000,000

Monthly Unlock Rate: $Monthly\_Unlock = \frac{Total \times 0.95}{60} = \frac{250M \times 0.95}{60} = 3,958,333 \text{ tokens}$

Purpose:

• Fund ongoing development

• Support partnerships

• Ecosystem grants

• Community initiatives

Visualization:

Year 1:  ████░░░░░░░░░░░░ 24%
Year 2:  ████████░░░░░░░░ 43%
Year 3:  ████████████░░░░ 62%
Year 4:  ████████████████ 81%
Year 5:  ████████████████████ 100%

5. Liquidity Mining (15% - 150M tokens)

Vesting Structure: 10% at TGE, decreasing emissions over 36 months

Emission Schedule:

Period	Monthly Emission	Total Period	Cumulative
TGE	-	15,000,000	15,000,000
Months 1-6	5,000,000	30,000,000	45,000,000
Months 7-12	4,000,000	24,000,000	69,000,000
Months 13-18	3,000,000	18,000,000	87,000,000
Months 19-24	2,500,000	15,000,000	102,000,000
Months 25-30	2,000,000	12,000,000	114,000,000
Months 31-36	1,500,000	9,000,000	123,000,000

Remaining: 27M tokens reserved for future programs

Emission Formula (per period): $Emission_t = Emission_0 \times Decay\_Factor^t$

Decay Rate: ~20% reduction every 6 months

Rationale:

• High initial rewards attract early users

• Gradual reduction maintains sustainability

• Prevents inflation

• Aligns with platform growth

Visualization:

Months 1-6:   ████████████████████ 5M/month
Months 7-12:  ████████████████░░░░ 4M/month
Months 13-18: ████████████░░░░░░░░ 3M/month
Months 19-24: ██████████░░░░░░░░░░ 2.5M/month
Months 25-30: ████████░░░░░░░░░░░░ 2M/month
Months 31-36: ██████░░░░░░░░░░░░░░ 1.5M/month

6. Marketing & Partnerships (8% - 80M tokens)

Vesting Structure: 15% at TGE, 24-month linear vesting

Timeline:

Month	Monthly Unlock	Cumulative %	Tokens Unlocked
0 (TGE)	15%	15%	12,000,000
6	3.54%	36.25%	29,000,000
12	3.54%	57.5%	46,000,000
18	3.54%	78.75%	63,000,000
24	3.54%	100%	80,000,000

Monthly Unlock: $Monthly\_Unlock = \frac{80M \times 0.85}{24} = 2,833,333 \text{ tokens}$

Purpose:

• Exchange listings

• Marketing campaigns

• Influencer partnerships

• Strategic collaborations

Visualization:

Month 0:  ███░░░░░░░░░░░░░ 15%
Month 6:  ███████░░░░░░░░░ 36%
Month 12: ███████████░░░░░ 58%
Month 18: ███████████████░ 79%
Month 24: ████████████████████ 100%

7. Treasury & Reserves (7% - 70M tokens)

Vesting Structure: No fixed schedule, released as needed

Governance: Requires community vote for releases >5M tokens

Purpose:

• Emergency liquidity

• Strategic opportunities

• Market stabilization

• Unforeseen needs

Release Criteria:

• Community governance approval

• Transparent reporting

• Strategic justification

• Market conditions assessment

Maximum Annual Release: 20M tokens (28.6% of allocation)

Consolidated Vesting Schedule

Monthly Unlock Summary

Year 1 Monthly Unlocks:

Month	Public	Private	Team	Ecosystem	LM	Marketing	Total	% of Supply
0	30M	10M	0	12.5M	15M	12M	79.5M	7.95%
1	10M	0	0	4M	5M	2.8M	21.8M	2.18%
6	10M	0	0	4M	5M	2.8M	21.8M	2.18%
12	10M	7.5M	0	4M	4M	2.8M	28.3M	2.83%

Total Year 1: 388M tokens (38.8% of supply)

Cumulative Supply Release

5-Year Projection:

Year	Public	Private	Team	Ecosystem	LM	Marketing	Cumulative	% of Supply
1	150M	55M	0	60M	75M	48M	388M	38.8%
2	150M	100M	67M	107M	123M	80M	627M	62.7%
3	150M	100M	133M	155M	123M	80M	741M	74.1%
4	150M	100M	200M	202M	123M	80M	855M	85.5%
5	150M	100M	200M	250M	150M	80M	930M	93.0%

Visualization:

Year 1: ████████░░░░░░░░░░░░░░░░░░░░ 38.8%
Year 2: ████████████░░░░░░░░░░░░░░░░ 62.7%
Year 3: ███████████████░░░░░░░░░░░░░ 74.1%
Year 4: █████████████████░░░░░░░░░░░ 85.5%
Year 5: ██████████████████░░░░░░░░░░ 93.0%

Vesting Mathematics

General Vesting Formula

Linear Vesting with Cliff:

$$V(t)= \begin{cases} 0 & t < t_{cliff} \\ TGE+\dfrac{(Total-TGE)(t-t_{cliff})}{t_{vest}} & t_{cliff} \le t \le t_{cliff}+t_{vest} \\ Total & t > t_{cliff}+t_{vest} \end{cases}$$

Where:

• V(t) = Vested amount at time t

• t_cliff = Cliff period duration

• t_vest = Vesting period duration

• TGE = Token Generation Event unlock

• Total = Total allocation

Unlock Rate Calculation

Instantaneous Unlock Rate: $\frac{dV}{dt} = \frac{Total - TGE}{t_{vest}}$

Example (Team vesting):

• Total: 200M tokens

• TGE: 0

• Vesting: 36 months

• Rate: 200M / 36 = 5.56M tokens/month

Supply Inflation Rate

Monthly Inflation: $Inflation\_Rate = \frac{Monthly\_Unlock}{Circulating\_Supply}$

Example (Month 12):

• Monthly Unlock: 28.3M tokens

• Circulating Supply: 388M tokens

• Inflation: 28.3M / 388M = 7.3%/month

• Annualized: ~87% (decreases over time)

Vesting Comparison

Cross-Category Comparison

Category	TGE %	Cliff	Vesting	Full Unlock	Avg Monthly
Public Sale	20%	0	12mo	12mo	10M
Private Sale	10%	6mo	12mo	18mo	7.5M
Team	0%	12mo	36mo	48mo	5.56M
Ecosystem	5%	0	60mo	60mo	3.96M
LM	10%	0	36mo	36mo	Variable
Marketing	15%	0	24mo	24mo	2.83M

Industry Comparison

use.com vs Competitors:

Exchange	Team Vesting	Public Vesting	TGE Unlock
use.com	48 months	12 months	5%
Binance	36 months	6 months	10%
FTX*	36 months	12 months	8%
Coinbase	N/A (equity)	N/A	N/A

*Historical data

use.com Advantages:

• Longer team vesting (better alignment)

• Conservative TGE unlock (less sell pressure)

• Gradual public unlock (market stability)

Vesting Enforcement

Smart Contract Implementation

On-Chain Vesting:

contract VestingContract {
    struct VestingSchedule {
        uint256 totalAmount;
        uint256 startTime;
        uint256 cliffDuration;
        uint256 vestingDuration;
        uint256 tgeAmount;
        uint256 released;
    }
    
    mapping(address => VestingSchedule) public schedules;
    
    function calculateVested(address beneficiary) public view returns (uint256) {
        VestingSchedule memory schedule = schedules[beneficiary];
        
        if (block.timestamp < schedule.startTime + schedule.cliffDuration) {
            return schedule.tgeAmount;
        }
        
        uint256 timeVested = block.timestamp - schedule.startTime - schedule.cliffDuration;
        uint256 vestedAmount = schedule.tgeAmount + 
            (schedule.totalAmount - schedule.tgeAmount) * timeVested / schedule.vestingDuration;
        
        return min(vestedAmount, schedule.totalAmount);
    }
    
    function release() external {
        uint256 vested = calculateVested(msg.sender);
        uint256 unreleased = vested - schedules[msg.sender].released;
        
        require(unreleased > 0, "No tokens to release");
        
        schedules[msg.sender].released += unreleased;
        token.transfer(msg.sender, unreleased);
    }
}

Security Features

Multi-Signature Control:

• 3-of-5 multisig for vesting contract

• Time-locked modifications

• Emergency pause functionality

• Audit trail for all releases

Transparency:

• Public vesting schedules

• Real-time unlock tracking

• On-chain verification

• Regular reporting

Vesting Modifications

Acceleration Clauses

Conditions for Acceleration:

1. Acquisition: 50% acceleration on acquisition

2. Listing Milestone: 25% acceleration if top-10 exchange

3. Revenue Target: 10% acceleration if $100M annual revenue

Example (Team member):

• Original Vesting: 48 months

• Acquisition at Month 24: 50% acceleration

• Remaining 24 months → 12 months

• New Full Unlock: Month 36

Termination Provisions

Team Member Departure:

Scenario	Vested Tokens	Unvested Tokens
Voluntary (Good Standing)	Keep	Forfeit
Involuntary (Without Cause)	Keep	50% accelerate
Involuntary (With Cause)	Keep	Forfeit
Death/Disability	Keep	100% accelerate

Vesting Analytics

Supply Velocity

Token Velocity Formula: $Velocity = \frac{Trading\_Volume}{Circulating\_Supply}$

Target Velocity: 0.5-1.0 (healthy for utility token)

Impact of Vesting:

• Lower circulating supply → Higher velocity

• Gradual unlocks → Stable velocity

• Predictable supply → Better planning

Price Impact Analysis

Theoretical Price Impact: $Price\_Impact = -\beta \times \frac{New\_Supply}{Existing\_Supply}$

Where β = market sensitivity (typically 0.3-0.7)

Example (Month 12 unlock):

• New Supply: 28.3M tokens

• Existing Supply: 388M tokens

• Supply Increase: 7.3%

• β = 0.5

• Expected Price Impact: -3.65%

Mitigation:

• Gradual unlocks

• Market maker support

• Buyback programs

• Utility demand

Conclusion

use.com's comprehensive vesting schedules ensure long-term alignment across all stakeholders while maintaining market stability. With conservative TGE unlocks, extended team vesting, and gradual supply release, the tokenomics support sustainable growth and value creation over the long term.

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Related Sections:

• Tokenomics Summary

• Presale Structure

• Token Utility Overview