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Linear Vesting

Governance Layer • Validators • Protocol Control

steady unlock schedule

Linear Vesting is a token release model where tokens unlock at a constant rate over a predetermined period. This approach ensures predictable and evenly spaced distribution, reducing the likelihood of sudden market shocks or concentrated dumps. Linear vesting is often used for team allocations, liquidity mining rewards, and ecosystem incentives to maintain balance between accessibility and commitment.

Use Case: A decentralized protocol rewards early contributors with tokens that vest linearly over 24 months, releasing an equal portion each month to encourage consistent alignment and participation.

Key Concepts:

  • Equal Distribution — Same amount released per unit of time (e.g., monthly)
  • Time-Based Unlock — Vesting begins after allocation or post-cliff
  • Market Stability — Prevents sudden liquidity surges or sell pressure
  • Stakeholder Alignment — Ensures contributors stay engaged over time
  • Vesting Curves — Custom schedules tailored to project needs
  • Cliff Vesting — Tokens locked until a specific date, then released
  • Backloaded Vesting — Majority of tokens release in later stages
  • Token Unlock Structures — Scheduled release of locked token allocations
  • Token Vesting Models — Framework for structured token release
  • Tokenomics — Economic design governing token supply, demand, and distribution
  • Supply Structure — Predefined rules governing token creation and distribution
  • Distribution Models — Methods for allocating tokens to participants
  • Token Velocity Control — Strategies to slow token turnover and support price

Summary: Linear Vesting offers a stable and transparent mechanism for token distribution, ideal for projects aiming to maintain long-term trust and reduce short-term volatility. It’s a foundational component of sustainable tokenomics.

Vesting Type Unlock Pattern Ideal For Market Impact
Linear Vesting Evenly over time Contributors, Liquidity Mining Low Volatility
Cliff Vesting Nothing until cliff ends Teams, Advisors Moderate Volatility Post-Cliff
Backloaded Vesting Slow start, faster later Growth-Linked Rewards Low Early Impact, Spikes Late
Instant Unlock Immediate full release Airdrops, Community Rewards High Volatility, Dump Risk

Duration Release Frequency Monthly % Typical Use
12 Months Monthly ~8.33% Advisors, short grants
24 Months Monthly ~4.17% Contributors, investors
36 Months Monthly ~2.78% Core team, founders
48 Months Monthly/Quarterly ~2.08% Long-term team vesting

How Linear Works
– Total allocation ÷ vesting months
– Equal amount unlocks each period
– Can start immediately or post-cliff
– Smart contract automated
– Claimable on schedule
– Formula: Unlocked = (Time Elapsed / Total Duration) × Allocation
Why Linear is Popular
– Simple and transparent
– Easy to model and forecast
– Predictable supply expansion
– Fair distribution pace
– No surprise unlock events
– Industry standard for most allocations
Simplicity: Linear vesting is the most straightforward model — everyone knows exactly how much unlocks and when. No complexity, no surprises.

Team/Founders
Often: Cliff + Linear
Duration: 36-48 months
Frequency: Monthly
Post-cliff steady release
Investors
Often: Cliff + Linear
Duration: 18-24 months
Frequency: Monthly/Quarterly
Moderate commitment period
Contributors/Grants
Often: Pure Linear
Duration: 12-24 months
Frequency: Monthly
Immediate engagement reward
Pattern: Linear vesting works best when combined with a cliff for insiders, or standalone for community contributors who need immediate participation incentives.

Linear Advantages
– Predictable supply schedule
– Easy investor modeling
– Steady sell pressure (manageable)
– Simple smart contract logic
– Fair to all stakeholders
– Industry standard credibility
Linear Disadvantages
– No extra retention incentive
– Early recipients get equal value
– Doesn’t reward longest holders
– Consistent (not zero) sell pressure
– May not fit all stakeholder types
– Less flexible than custom curves
Tradeoff: Linear is fair but neutral — it doesn’t specifically reward the longest commitment. For maximum retention, combine with cliff or use backloaded instead.

Month Pure Linear (24mo) 6mo Cliff + Linear 12mo Cliff + Linear
Month 1-6 25% released 0% released 0% released
Month 7-12 50% released 33% released 0% released
Month 13-18 75% released 67% released 50% released
Month 19-24 100% released 100% released 100% released

Best Practices
– Publish full schedule transparently
– Smart contract enforcement
– Consider monthly vs quarterly
– Align duration with commitment
– Combine with cliff for insiders
– Document in tokenomics paper
Common Mistakes
– Duration too short (< 12 months)
– No cliff for team tokens
– Hidden or unclear terms
– Modifiable by admin
– Different terms for similar roles
– Ignoring market absorption capacity
Guideline: Match vesting duration to expected commitment. If you want 3 years of contribution, vest over 3 years. Shorter vesting = faster exits.

 
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