# Token Vesting
Initially only 10% of the Royalty Token are sold in pre-sale and 10% Royalty Token are locked in liquidity pool. The below illustrates how the remaining tokens will become unlocked.
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**
1. (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
2. (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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