Price-based vesting introduces a dynamic token unlock mechanism that adjusts based on market performance. Unlike traditional vesting schedules, this approach ensures that token unlocks are aligned with the token’s value and community engagement, promoting long-term sustainability.
How It Works
Price-based vesting dynamically releases tokens depending on the token’s market conditions. The Target Price determines the vesting duration, which can be capped using the Maximum Vesting Duration setting. If the token performs well, tokens unlock faster; otherwise, they follow a time-based release schedule.
Key Parameters:
Target token price – The price threshold that dictates token unlocks.
Duration at target price – The minimum time required for full unlock if the token’s price remains at or above the target price.
Max duration – The longest period for unlocking tokens, ensuring distribution even if price conditions are not met.
The Problem
Traditional vesting mechanisms often fail to align incentives between core contributors, investors, and retail participants. Common issues include:
Teams and investors receiving large unlocks regardless of market performance, leading to sell pressure.
Standard vesting schedules causing sudden sell-offs at unlock periods, negatively impacting token price stability.
Lack of incentives for community participation in supporting token growth and stability.
The Solution: Price-Based Vesting
Price-based vesting introduces a flexible and performance-driven approach to token unlocks. By tying vesting schedules to market performance, this system ensures that token distribution aligns with long-term project success and community incentives.
Key Features:
Oracle-driven unlocking – Uses trusted oracles to fetch real-time market data (e.g., token price).
Dynamic multiplier system – Adjusts unlock rates based on predefined price thresholds and multipliers.
Performance-based unlocking – Tokens unlock at an increased rate when market performance criteria are met and slow down when targets are not reached.
Benefits
Encourages market stability – Prevents sudden sell-offs by linking unlocks to performance.
Incentivizes community engagement – Encourages holders to contribute to price stability and project growth.
Fairer distribution – Ensures token recipients benefit from the project's long-term success rather than short-term speculation.
Conclusion
Price-based vesting offers a structured yet adaptable way to distribute tokens based on real-time market conditions. By aligning unlock schedules with success metrics, projects can foster a healthier token ecosystem, reduce immediate sell pressure, and create sustainable tokenomics.
Guide to Price-Based Vesting
Price-based vesting is a dynamic token distribution mechanism that adjusts token unlocks based on market performance. This ensures alignment between teams, investors, and the community while preventing excessive sell pressure.
Step 1: Choose Vesting Type
Begin by selecting Price-Based Vesting as your preferred vesting method.
Step 2: Configure Vesting Parameters
Select token – Choose the token you want to vest from the available options in your wallet. Your token balance will be displayed.
Set target token price – This price determines the vesting duration. If the token reaches or exceeds this price, the set vesting duration applies.
Set duration at target price – Define the time frame over which tokens will unlock if the token’s price is at or above the target.
Set max duration – This ensures all tokens unlock after a set period, regardless of price performance.
Unlock schedule – Choose how frequently tokens will be unlocked (e.g., daily, weekly, or monthly).
Vesting start time – Decide whether to start vesting immediately or schedule a future start date.
Enable auto-claim (optional) – This feature automatically transfers unlocked tokens to the recipient’s wallet without requiring manual claims. The sender covers transaction fees for this automation.
Define permissions – Choose who can cancel the contract or modify the recipient’s address.
Step 3: Add Recipient(s) & Vesting Details
Enter Recipient Information
Amount – The number of tokens to be progressively unlocked.
Recipient wallet address – Ensure accuracy, as tokens will be sent here.
Contract title (optional) – Helps label and track the contract.
Recipient email address (optional) – Enables notifications about vesting progress and token unlocks.
Add Multiple Recipients – Click "+ Add Recipient" to include up to 60–300 recipients per contract (wallet-dependent). Each contract will be displayed separately upon creation.
Step 4: Review Vesting Details
Before finalizing, review your contract details:
Target price & current price
Max duration & vesting schedule
Number of recipients
Total token amount
Streamflow fees
Verify all settings and ensure they align with your expectations.
Step 5: Create the Contract
Once everything is set, click 'Create Contract' and approve the transaction in your wallet. Congratulations! Your price-based vesting contract is now live.
Email Notifications
If an email address was provided, recipients will receive:
A confirmation email with vesting details upon contract creation.
Notifications each time unlocked tokens are transferred.
This is an optional feature and can only be set up during contract creation.
By using price-based vesting, you ensure a balanced, market-driven token release schedule that aligns incentives and fosters long-term project stability.