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Vesting

Token Vesting — schedule releases for teams and investors

How vesting schedules protect your token economy, how the Lester Labs Vesting Factory works, and how to set up cliff and linear release for any wallet.

7 min readTutorial

Why vesting matters for token economies

The biggest risk in any token launch is the VC dump. If your team or investors receive their entire token allocation at launch, there is immediate sell pressure from everyone who wants to realise their gains. This collapses the price and destroys confidence. Vesting solves this by locking tokens and releasing them on a schedule. Team tokens vest linearly over 12 months. Investor tokens might have a 6-month cliff then linear release. This aligns incentives: the team and investors only profit if the token price stays up, which means they are working to build genuine value.

Once a vesting schedule is created on-chain, it cannot be modified or cancelled. This is by design — the immutability is what makes vesting credible to investors. Choose your schedules carefully before deploying.

Key vesting concepts

Before setting up vesting, understand the two parameters that matter most: Cliff: A period at the start where no tokens are released. If you set a 6-month cliff, beneficiaries receive nothing for the first 6 months, then all cliff tokens vest at once. Linear release: Tokens unlock continuously after the cliff. 12-month linear means 1/365th of the vested amount unlocks every day after the cliff ends.

Setting up a vesting schedule

1

Go to the Vesting Factory

Navigate to lester-labs.com/vesting. Connect your wallet and ensure you hold the token you want to use for vesting.

2

Enter the beneficiary address

Paste the wallet address that will receive the vested tokens. This cannot be changed after deployment — make sure the address is correct. Consider a multisig for team vesting to require multiple signatures for any changes.

3

Set the total allocation

Enter the total number of tokens to be allocated to this beneficiary. This is the full amount that will eventually vest — not the amount vesting per month.

4

Configure the schedule

Set the start date, cliff duration (0 for immediate release, or 3/6/12 months), and total vesting duration. Common configurations: Team: 12-month cliff, 24-month linear total Advisors: 6-month cliff, 12-month linear Private investors: 0 cliff, 12-month linear

5

Deploy and deposit

Review the schedule summary and pay the deployment fee. After deployment, transfer the total vested allocation to the newly created vesting contract address. The contract holds the tokens and releases them automatically according to the schedule.

Use the same vesting schedule across all team members. This signals fairness to your community and prevents accusations of stealth allocations to favourite investors.

How beneficiaries claim vested tokens

Beneficiaries visit the Vesting Factory page, connect their wallet, and the UI shows their vesting schedule: total allocated, amount vested so far, amount claimed, and amount remaining. They click Claim and any vested-but-unclaimed tokens are transferred to their wallet instantly. No admin can revoke or redirect tokens once the schedule is set. The contract is the authority.

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