(This post was made with the help of @Griff)
What Are the Vesting Parameters?
There are 2 Vesting Parameters:
- The Vesting Cliff Period: The period of time in which the tokens minted during the hatch are 100% locked and can’t be converted into xDAI using the Bonding Curve.
- The Vesting Complete Period: The period of time from the end of the Hatch in which the tokens minted during the Hatch become completely unlocked.
In the Rinkeby Hatch Test, the Vesting Cliff Period was 3 days and the Vesting Complete Period was 21 days. So, if the Hatch would have succeeded, on day 1, 2 and 3, every token created during the Hatch would have been locked, and on day 4 these tokens would have started to be unlocked linearly until day 21 when all the tokens would have become unlocked and able to be sold into the bonding curve.
Does this match the original Commons Stack Design?
No, the current implementation unlocks tokens based on time, but there are other ways, taken from this article that could work better (but have not been coded yet)
https://medium.com/commonsstack/deep-dive-augmented-bonding-curves-b5ca4fad4436
- The Hatchers tokens are slowly unlocked in correlation to how much capital has been allocated to fund projects that support the commons. This means that for the Hatchers’ tokens to vest, capital from the Funding Pool has to be allocated to fund projects that positively impact the Commons. With this vesting process and introduction of a governance model (we will be exploring Conviction Voting), members of the Commons (token holders), are economically incentivized to participate in the system’s governance process to allocate funding to curated projects that have the most beneficial impact on the Commons. This combats a known incentive misalignment observed in capital-allocating DAOs — in which capital allocations are rare because members are too selective or stingy with funds.
Vesting Cliff Period
So, since we are limited to time, we could try to categorize and see the benefits of:
- A short vesting cliff (1-4 weeks)
- A medium vesting cliff (1-3 months)
- A long vesting cliff (3-12 months)
Some questions we could ask to each of these options could be:
- What are the benefits?
- What are the drawbacks?
- What information should we use to decide the actual value of the Vesting Cliff Period?
Vesting Complete Period
- A short vesting complete period (1-8 weeks)
- A medium vesting complete period (2-12 months)
- A long vesting complete period (1-4 years)
Some questions we could ask to each of these options could be:
- What are the benefits?
- What are the drawbacks?
- What information should we use to decide the actual value of the Vesting Complete Period?