Token Vesting
Performance-Driven Vesting: Ensuring Alignment and Sustainable Growth for Merchants and Investors
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
(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
Qupital is also subject to the same vesting requirements.
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