Token Vesting
Performance-Driven Vesting: Ensuring Alignment and Sustainable Growth for Merchants and Investors
Illustration only: Percentages and the optional pre-sale described here are examples of how a listing could be structured. They are not a fixed launch framework. A pre-sale is optional and may be omitted, resized, or given a different vesting schedule per RTGE.
In one illustrative setup, 10% of the Royalty Token supply is sold in an optional pre-sale and 10% is locked in the liquidity pool. The diagram below shows how remaining tokens might unlock over time.
For merchants, unlocking their tokens is tied directly to business performance. This vesting mechanism ensures that the merchants' interests align with Royalty Token holders:
Growth-Based Unlocking
Revenue growth target
Annual performance reviews using platform data oracle, measured at each anniversary of initial offering
Each review can trigger token transitions from locked to LP staked status
Unlocking Process
(Stage One) Locked → LP Staked
When growth targets are met, tokens move to LP staking
Royalty Token are automatically sold to create matching LP pair
Merchants are not able to redeem LP until Stage Two is reached
(Stage Two) LP Staked → Liquid
Only occurs when LP size exceeds 30% of circulating Royalty Token supply
Excess LP tokens unlock every 3 months
This mechanism ensures:
Merchants stay committed to growth
Market stability through adequate liquidity to protect against selling pressure
Gradual token distribution based on performance
Asset originator is also subject to the same vesting requirements.
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