Explain this proposed vesting schedule from Retik Finance

Proposed vesting schedule from Retik Finance explained:

  1. Vesting schedule for presale buyers
  2. Total supply 1 billion
  3. Amount in Presale tokens: 400,000,000
  4. Presale percentage of Total Supply: 40%
  5. Unlock % of This Allocation at TGE (Token Generation Event) : 0%
  6. Cliff Period: 1 Week
  7. Vesting Period: 5% every week for 20 weeks (Starting 29th May 2024)
  8. TGE % of Total Supply: 0%

 

  1. Vesting Schedule for Presale Buyers: This is a plan that shows how and when the tokens bought during a presale (before the public sale) will be given to the buyers. It helps to control how many tokens are available in the market at any given time.
  2. Total Supply = 1 Billion: The cryptocurrency project will create a total of 1 billion tokens. No more than this number will ever exist.
  3. Presale Amount in Tokens = 400,000,000: Out of the total 1 billion tokens, 400 million tokens are set aside for a specific purpose or group (such as investors or team members).
  4. Percentage of Total Supply = 40%: The 400 million tokens represent 40% of the total supply of 1 billion tokens.
  5. Unlock % of This Allocation at TGE = 0%: At the Token Generation Event (TGE), which is when the tokens are officially launched and start to exist, none of these 400 million tokens will be available immediately. They are locked to prevent them from being sold or traded right away.
  6. Cliff Period: 1 Week: There is a waiting period of one week after the TGE during which no tokens are released. After this week, the vesting schedule will start.
  7. Vesting Period: 5% every week for 20 weeks (Starting 29th May 2024): Starting from 29th May 2024, 5% of the 400 million tokens (which equals 20 million tokens) will be released every week to the holders. This release will continue for 20 weeks until all the vested tokens are distributed.
  8. TGE % of Total Supply: 0%: At the time of the TGE, 0% of the total token supply (1 billion tokens) will be made available for immediate use or trading.

In essence, these terms are used to control the distribution of tokens to prevent a massive influx of new tokens into the market all at once, which could decrease the token’s value. The gradual release ensures a more stable market and provides an incentive for initial investors to remain invested in the project.

Investors will be able to claim 100% of their tokens after 20 weeks. Here’s why:

The vesting period described by Retik releases 5% of the tokens each week for 20 weeks. Since there are 400 million tokens allocated to this group, 5% of that is 20 million tokens released each week. It will take 20 weeks (5% each week) for all of these tokens (400 million) to be fully released to the investors.

So, starting from May 29th, 2024, if we add 20 weeks to this date, the investors will have access to all of their tokens by around October 16th, 2024.

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