How to set up token vesting for your Web3 project
Jun 1, 2023
If you’re building a Web3 project and planning on launching a token chances are you’ll need to set up a token vesting schedule. In this guide, we'll show you how to create an automated vesting schedule for your token using VTVL in under 5 minutes.
What options exist for token vesting in Web3?
In Web3, there are a few options when it comes to setting up vesting for a token. These options include open-source vesting smart contracts or a manual approach using a spreadsheet.
These methods for token vesting can often be cumbersome, inefficient, and prone to errors. VTVL simplifies the process and offers several benefits, including:
- Easy setup: Creating a vesting schedule is quick and hassle-free.
- On-chain deployment: VTVL ensures the secure and transparent execution of your token distribution.
- Seamless claiming experience: Recipients can effortlessly claim their tokens on the platform and get insights into their vesting progress.
- Real-time analytics: Gain insights into your token distribution process and cap table at any time.
Setting up your vesting schedule
Step 1: Set up your VTVL account
Navigate to vtvl.io, select Mainnet, and create an account.
When setting up your account, our dashboard will prompt you to optionally link or create a SAFE multi-sig wallet as well as add other team members to your organization.
Step 2: Import or create your token
If you’ve already created a token for your project, you can import it by pasting the token address into the dashboard. Alternatively, you can also mint a new token directly through the VTVL platform.
Step 3: Create a vesting schedule for your token
After importing or creating your token, hover over the “Create” button and select “Create Schedule”. You’ll then be prompted to give the vesting schedule and contract a name in order to be able to identify them later.
- Vesting schedule: Refers to the actual vesting schedule, its parameters, and recipients.
- Vesting contract: Refers to the smart contract deployed on-chain, allowing for the vesting schedule to be automated.
Step 4: Add your recipients
VTVL lets you add recipients using two methods:
- CSV Import: If you’ve got a large number of recipients, you can use this method to bulk import users using a CSV file.
- Manual Import: Import recipients one by one using the add recipient form, entering in details for each user including their email, token allocation, and adding a label for the recipient type.
Step 5: Define your vesting schedule parameters
Fill out the vesting schedule parameters including the vesting time frame, cliff period, distribution frequency, etc.
After finishing this process you’ll be presented with a visualization of the vesting schedule allowing you to verify and confirm details before proceeding.
Step 6: Funding and deploying the vesting contract on-chain
Now that you’ve successfully set up the vesting schedule, you will need to deploy it on-chain so it can be automated.
Navigate to your dashboard, under "Pending Actions", you’ll be prompted with a button to deploy the contract. Click "Deploy" and sign the transaction using your crypto wallet.
Deploying and funding a contract on-chain is a multi-step process requiring multiple transactions to be confirmed. Our dashboard will prompt you with the required transactions which need to be confirmed until the process is completed and the vesting contract is successfully deployed.
Step 7: Vesting contract successfully deployed on-chain
After executing all transactions successfully, the vesting contract will be funded and deployed on-chain and begin the distribution cycle of your tokens.
To see the vesting progress, navigate to the "Contracts" tab, and click on the vesting contract you created.
Any recipients you added can set up a VTVL recipient account using the same email and wallet address you provided in the recipient form, allowing them to visualize their vesting progress and claim tokens once they have been distributed.
Tokens serve as the lifeblood of Web3 projects, establishing a foundation for decentralized governance, incentivizing participation, and driving the value of the project. This makes their distribution mission critical for any Web3 venture.
But distribution isn't a one-time event. It's a strategically planned process that ensures tokens reach their rightful recipients at the right time. Implementing an efficient, transparent, and secure token vesting schedule is essential to maintain the integrity of this process and safeguard the long-term success of your project.
As a Web3 token vesting platform designed with the users in mind, VTVL takes the complexity out of token vesting. It transforms the process into an intuitive, easy-to-follow journey - from defining your vesting parameters to monitoring your token distribution in real-time.
Additionally, as an on-chain vesting solution, VTVL not only automates your token vesting process but also instills trust in your token distribution. It provides a seamless claim experience for your token recipients, ensuring your tokens reach their owners smoothly and efficiently.