We have seen a few instances where DeFi projects offered the complete allocation to individual investors all at once. This led to a selling spree, where investors start selling the tokens as soon as they receive their allocation. Due to this, the price of the token plummets significantly, causing damage to both the project and the investors who invested for the long term.
To avoid such a situation, many projects implement monthly token vesting, where the tokens allocated to each investor are unlocked on a monthly basis.
For example, if a project investor has a strategic allocation of 1000 tokens with a vesting period of 12 months, their allocations are unlocked at the rate of 10%, which in this case is 100 tokens per month. So, every month, each of the investors receives ongoing 8,18% of the total allocation, which they can choose to sell, hold, stake, etc. However, the remaining tokens will still remain in the investors’ wallets, but they will remain locked until the vesting is completed.
In case you do not know your vesting check out our article about tokenomics!
Even this is not a very efficient approach as if a majority of the investors choose to sell (dump) 10% of their unlocked tokens every month around the same time; it can still cause a price crash.
To help DeFi City investors avoid similar troubles of a DFC token dump and build long-term trust in the project, we have devised a more secure token vesting strategy.
All the presale allocations by our investors will be initially locked in their wallets. We have defined a daily vesting schedule for unlocking the tokens and giving complete access to the investors. By doing this, we will be unlocking small portions of the total allocation every day, and these unlocked tokens will be made fully available to the investors. The tokens will be automatically unlocked without the need for investors to claim them.
However, the vesting for the first 30 days will be unlocked at once on Friday, after the listing on July 16, 2021, at 4:00 PM UTC. After this, from day 31, the daily vesting will begin.
Our daily vesting strategy will avoid any big DFC dumps, which may otherwise cause a price crash. So, with small portions of tokens being unlocked daily, the investors will only be able to sell small amounts at once, preventing any major downfalls. Additionally, if they try to sell more tokens than what’s unlocked, their transactions will fail, ultimately only causing them to lose on gas fees.
Due to this, we strictly advise our investors to check the number of unlocked tokens in their wallets and only then execute any trades.
To check your personal vesting information for the DFC token, click here and connect the crypto wallet. The window will then automatically display your vesting information.
If you have any questions or queries about our token vesting schedule, you can reach us on our Telegram channel: https://t.me/DeFiCityOffical.