> For the complete documentation index, see [llms.txt](https://docs.liquidroyalty.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.liquidroyalty.com/token/token-vesting.md).

# 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.

<figure><img src="https://467792424-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fcsc5wbONKMuHeGeM8UqE%2Fuploads%2F34QiNrDaOiPxYTHcG1ud%2Fimage.png?alt=media&amp;token=431a674f-df3c-41cc-b7d7-6298a6c3659f" alt="" width="563"><figcaption></figcaption></figure>

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.