What is Liquid Vested Token?
Last updated
Last updated
Vested Tokens (TOKEN) are tokens that you can receive in a specific time period.
Let’s imagine that Alice promises 120 TOKENs to Bob with a 1-year Vesting. It means that Bob will be able to receive all 120 TOKENs in 1 year.
If Bob claims the tokens after 1 year, he will receive 120 TOKENs.
If Bob claims the tokens after 6 months, he will receive 60 TOKENs.
If Bob claims the tokens after 1 month, he will receive 10 TOKEN.
If Bob claims the tokens after 1 day, he will receive 120 TOKENs / 365 days = 0.329 TOKENs
Basically, Bob can claim the TOKENs every second, however, he can’t receive the TOKENs earlier than they are available.
Cliff is the time between the “Deal” date and the start of Vesting.
It means that Bob can start claiming TOKENs after 3 months from Alice’s promise and receive them during the next 12 months.
If Bob claims tokens after 1 month from Alice’s promise, he will not receive anything.
If Bob claims tokens after 3 months and 1 day from Alice’s promise, he will receive 120 TOKENs / 365 days = 0.329 TOKENs.
If Bob claims tokens after 4 (3 + 1) months from Alice’s promise, he will receive 10 TOKEN.
If Bob claims tokens after 9 (3 + 6) months from Alice’s promise, he will receive 60 TOKENs.
If Bob claims tokens after 15 (3 + 12) months from Alice’s promise, he will receive 120 TOKENs.
Let’s imagine that Alice promises 120 TOKENS to Bob with a 3 months Cliff and a 1-year Vesting with the ability to get 120 vTOKENs during the Cliff period.
It means that Bob can claim a total of 120 vTOKENs to his wallet before the start of Vesting. However, he can start Redeeming these 120 vTOKENs for the usual TOKENs after 3 months from Alice’s promise and receive them during the next 12 months.
Bob can’t Redeem tokens after 1-3 months from Alice’s promise.
If Bob redeems vTOKENs after 3 months and 1 day from Alice’s promise, he will receive 120 TOKENs / 365 days = 0.329 TOKENs.
If Bob redeems vTOKENs after 4 (3 + 1) months from Alice’s promise, he will receive 10 TOKENs.
If Bob redeems vTOKENs after 9 (3 + 6) months from Alice’s promise, he will receive 60 TOKENs.
If Bob redeems vTOKENs after 15 (3 + 12) months from Alice’s promise, he will receive 120 TOKENs.
You can transfer vTOKENs between the different wallets.
You can sell vTOKENs to somebody for a lower price and get your money even during the Cliff period.
v0ABR - you can redeem them with 1-to-1 ratio to ABR immediately because there is no Cliff.
v6ABR - you can start redeeming them with a 1-to-1 ratio to ABR after 6 months, because there is a 6 months Cliff.
v12ABR - you can start redeeming them with a 1-to-1 ratio to ABR after 12 months, because there is a 12 months Cliff.
Redeeming will be available soon. There will be an announcement and all the needed guides.
