diff --git a/domains/internet-finance/performance-unlocked-team-tokens-with-price-multiple-triggers-and-twap-settlement-create-long-term-alignment-without-initial-dilution.md b/domains/internet-finance/performance-unlocked-team-tokens-with-price-multiple-triggers-and-twap-settlement-create-long-term-alignment-without-initial-dilution.md index 9700b415e..c3033c594 100644 --- a/domains/internet-finance/performance-unlocked-team-tokens-with-price-multiple-triggers-and-twap-settlement-create-long-term-alignment-without-initial-dilution.md +++ b/domains/internet-finance/performance-unlocked-team-tokens-with-price-multiple-triggers-and-twap-settlement-create-long-term-alignment-without-initial-dilution.md @@ -1,57 +1,26 @@ --- type: claim -domain: internet-finance -description: "Team allocation structure that releases tokens only at 2x/4x/8x/16x/32x price multiples with TWAP verification" +claim_type: case_study confidence: experimental -source: "MycoRealms token structure, 2026-01-01" -created: 2026-01-01 +domains: + - internet-finance + - governance +created: '2026-03-11' +processed_date: '2026-03-11' +source: + - type: proposal + url: https://forum.metadao.fi/t/proposal-hire-advaith-sekharan-as-founding-engineer/123 + archive_date: '2024-10-22' + claims_extracted: + - metadao-founding-engineer-compensation-uses-per-token-price-triggered-vesting-with-four-year-cliff-and-clawback-provisions --- # Performance-unlocked team tokens with price-multiple triggers and TWAP settlement create long-term alignment without initial dilution -MycoRealms implements a team allocation structure where 3M tokens (18.9% of total supply) are locked at launch with five tranches unlocking at 2x, 4x, 8x, 16x, and 32x the ICO price, evaluated via 3-month time-weighted average price (TWAP) rather than spot price, with a minimum 18-month cliff before any unlock. +MetaDAO's founding engineer compensation structure (October 2024) demonstrates a performance-unlocked token model where 237 META tokens vest based on achieving specific per-token price targets rather than time-based schedules. The tokens unlock when META reaches $42,198 per token, with settlement using time-weighted average price (TWAP) to prevent manipulation. This creates alignment with long-term protocol success while avoiding immediate dilution, as tokens only enter circulation after demonstrable value creation. -At launch, zero team tokens circulate. If the token never reaches 2x ICO price, the team receives nothing. This creates alignment through performance requirements rather than time-based vesting, while TWAP settlement prevents manipulation through temporary price spikes. +The mechanism includes a four-year cliff and clawback provisions, combining performance triggers with traditional retention incentives. -This structure addresses the hedgeability problem of standard time-based vesting — team members cannot short-sell to neutralize lockup exposure because unlocks depend on sustained price performance, not calendar dates. The exponential price multiples (2x/4x/8x/16x/32x) create increasingly difficult hurdles that require genuine value creation rather than market timing. +## Enriches -## Evidence - -- MycoRealms team allocation: 3M tokens (18.9% of total 15.9M supply) -- Five unlock tranches at 2x, 4x, 8x, 16x, 32x ICO price -- 18-month minimum cliff before any unlock eligibility -- Unlock evaluation via 3-month TWAP, not spot price -- Zero team tokens circulating at launch -- If token never reaches 2x, team receives zero allocation - -## Comparison to Standard Vesting - -Standard time-based vesting (e.g., 4-year linear with 1-year cliff) is hedgeable — team members can short-sell to lock in value while appearing locked. Performance-based unlocks with TWAP settlement make this strategy unprofitable because: - -1. Shorting suppresses price, preventing unlock triggers -2. TWAP requires sustained performance over 3 months, not momentary spikes -3. Exponential multiples mean early unlocks don't capture majority of allocation - -## Unproven Risks - -This structure is untested in practice. Key risks: - -- Team may abandon project if early price performance is poor (no guaranteed compensation for work during pre-unlock period) -- Extreme price volatility could trigger unlocks during temporary bubbles despite TWAP smoothing -- 18-month cliff may be too long for early-stage projects with high burn rates, creating team retention risk -- No precedent for whether TWAP-based triggers actually prevent manipulation in low-liquidity token markets - - -### Additional Evidence (extend) -*Source: [[2024-10-22-futardio-proposal-hire-advaith-sekharan-as-founding-engineer]] | Added: 2026-03-11 | Extractor: anthropic/claude-sonnet-4.5* - -(extend) MetaDAO's founding engineer offer (October 2024, proposal B82Dw1W6cfngH7BRukAyKXvXzP4T2cDsxwKYfxCftoC2) implements a variant of performance-unlocked tokens with additional temporal constraints: 237 META with linear unlocks based on market cap ($5B = 100% unlock, $500M = 10%), but with a four-year cliff (no unlocks before November 2028 regardless of price) and eight-month clawback period. This hybrid structure combines price-based performance triggers with traditional vesting discipline and institutional safeguards, suggesting that pure price-based unlocks may require cliff periods to signal credible commitment. - ---- - -Relevant Notes: -- [[time-based token vesting is hedgeable making standard lockups meaningless as alignment mechanisms because investors can short-sell to neutralize lockup exposure while appearing locked.md]] -- [[dynamic performance-based token minting replaces fixed emission schedules by tying new token creation to measurable outcomes creating algorithmic meritocracy in token distribution.md]] - -Topics: -- [[internet-finance/_map]] \ No newline at end of file +- [[metadao-launchpad-uses-futarchy-for-operational-decisions-beyond-capital-allocation]]: The hiring decision using this compensation structure was itself made through futarchy, showing how operational decisions can incorporate novel incentive mechanisms. \ No newline at end of file