Token vesting is an essential tool to ensure the safety and confidence of early investors in new DeFi projects. The existing token vesting process involves the locking of team tokens for a set period of time, typically one or two years, using vesting platforms such as Unicrypt.
During the vesting period, no team members or angel investors are able to access the locked tokens. Although this is great for ensuring public investors are protected from exit scams, the locking of tokens in this way can create numerous issues for the team and project growth. By locking tokens, the team is unable to sell additional equity to new strategic partners which can prevent larger purchases being made OTC and in some instances being the failing point of a potential deal.
The ability to lock tokens has created a much needed safety net for investors. The Revest Protocol and the introduction of Financial Non-Fungible Tokens (FNFTs) will further develop existing token locking strategies and introduce a new, more complex safety layer.
As well as utilizing existing time lock vesting methods, the Revest Protocol will introduce value lock vesting. Value locks will ensure that locked tokens are inaccessible to the team until they reach a certain price, ensuring their commitment to project growth. Both time locks and value locks can be used in combination to create the ultimate vesting system that works in the best interest of public investors.
During the creation of these vesting tokens, developers will be given the option to program a set number of “splits,” which will allow any FNFTs created with them to have their value redistributed to additional FNFTs, however many times is prescribed by the FNFT’s creator. Including splits as a feature in vesting tokens may be particularly useful if initial denominations of FNFTs prove to be higher in value than expected, and further fragmentation of the vested tokens is desired to allocate equity to various new partners.
Team members and angel investors will also benefit from utilizing the Revest Protocol. Through locking tokens using a Revest FNFT, this will also allow for the sale and transfer of vested tokens on the Revest platform and other NFT marketplaces such as Opensea. By locking tokens within an FNFT, team equity can be sold to fund project development whilst having no adverse effect on the market price, creating a new meta-layer of commerce and a new potential income stream.
Liquidity tokens can also be locked within an FNFT, allowing for the entire ecosystem to be acquired by interested parties while still being locked until the prescribed end date/value.
It is clear that token vesting has vastly improved the crypto space and is here to stay. At Revest we are aligning many partnerships with existing launchpads who will be using our FNFTs to lock new project tokens. Our technology will be available to use and demonstrated immediately after our token launch, scheduled for Q3 2021.
The Revest Protocol token vesting service will be deployed initially on Ethereum and on Binance Smart Chain, with future plans to deploy on Polygon chain later this year.
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