What Are Multi-chain Vesting Contracts?

Introduction to Multichain Vesting Contracts

Multichain vesting contracts are a way to release the tokens belonging to either a project’s team or early investors. These contracts are managed by multichain technology, which gives them the flexibility to be adapted to a crypto project’s needs. There are three types of vesting contracts available: ongoing, custom, and airdrop.

Types of Vesting Contracts

Ongoing Vesting Contract is when tokens are distributed all the time, block by block.
Custom Vesting Contract, tokens are distributed in batches (portions), with the time between each batch being pre-defined by the project.
Airdrop Vesting Contract is when the tokens are distributed all together, only one time.

Benefits of Using Vesting Contracts

Using vesting contracts provides increased transparency with a token’s management and growing trust. It also helps projects to avoid errors by using whitelisted addresses only. It can also help a project avoid a mass sale of tokens from the project’s end or by a team member.

Partial Funding for Vesting Contracts

Partial funding is a functionality that allows a project to place a portion of its vesting rewards in a contract. The minimum required funding is 5% of the total vesting amount. Partial funding enables projects to use their tokens for other usages. Additionally, crypto projects can use it to present a lower circulating supply or avoid unlikely contract issues. Distribution will cease if the tokens within the contract have been depleted before the scheduled end of the contract. The reactivation time and costs of the contract are identical to the launch of a new contract.

Updated on: 28/12/2023