Colonylab announced progress payment mechanism
colony is a community-driven accelerator that transforms avalanche into an inclusive dao to boost ecosystem growth . it is backed by a management token: $cly. colony will allocate capital within avalanche on early stage projects , provide liquidity to defi protocols, maintain an index on top avalanche projects, and validate networks through stacking capabilities. the real livelihood and value generated by the colony's investments are diverted back to the community through airdrops, a buyback mechanism and betting rewards.
linear vesting definition of colony
all of colony 's vetting schedules are set to linear vetting rather than major unlocks at the end of each quarter. this will help avoid selling pressure on certain dates. the linear authorization of colony is based on the “seconds” timescale, meaning there is a unlock every second for a given period of time. thanks to this mechanism, colony 's tokens can be regularly staked as users request, without affecting the token price .
let's take a private sale right as an example:
investors got 10% on tge, and after 90 days of cliff , the remaining 90% for 12 months will also be unlocked every second. (cliff vesting, what is (cliff entitlement)?, cliff vesting is when an employee is fully vested on a specific date rather than partially entitled over an extended period of time. typically, plans have a four-year vesting program plan with a one-year cliff .)
there are approximately 77,361,953 clys (private sales) to be released over the next 12 months, which represents approximately 2.45 clys per second. so avoid major unlocks and the selling pressure associated with them.
why is token vesting important?
vesting restrains market price manipulation, supply fluctuations and creates investor loyalty to the project. accordingly, token purchasers will devote their attention to the project and continue to support its development to preserve the token's value. usually, in practice, after tge events, large volumes of tokens are owned by original investors, who sell their tokens on the secondary market when they reach higher valuations.
the excess supply causes the value of the token to drop rapidly. this makes qualifying an integral part of the token economy. protects both public and seed/private sales participants. above all, it ensures the stability of a project and the viability of the ecosystem in the long run. it not only secures the future of a project, but also the interests of those involved in early sales. as such, the colony's linear devolution is designed to promote alignment of interests to reduce selling pressure and protect the colony's community and investors, while the protocol continues to develop and deploy a host of innovative defiance features.
colonyi's qualifying program following tge (december 8, 2021)
seed: 12 month cliff, 12 month linear vesting
private: 10% on tge, 90 days cliff, 12 months linear vesting
public sale: 100% unlocked
liquidity supply: 100% unlocked
community incentives: 27 months straight entitlement
team: 24-month cliff, 12-month linear investment
recommended: 24-month cliff, 12-month linear entitlement
reminder: application deadline
you have + 6 months until the end of colony's qualifying program to claim your tokens. beyond this period, you will lose access to these unclaimed tokens. you can start claiming during the qualifying period or claim all the accumulated tokens available to you at the end of the qualifying program.
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