Distribution (Cliff & Vesting)
Last updated
Last updated
Upon the culmination of the CratD2C Pre-Seed phase, a distinct transition phase termed the "cliff period" will ensue. This phase extends for a duration of 3 months, commencing from the very first day that the CratD2C Coin is officially listed on the LBANK exchange. This period is a deliberate strategic move designed to align with the overall vision and operational dynamics of CratD2C.
During this cliff period, participants who engaged in the Pre-Seed phase will encounter an innovative mechanism known as the "vesting contract." This mechanism is specially designed to ensure that the distribution of acquired CratD2C coins is both balanced and strategically paced. As a testament to CratD2C's commitment to building a sustainable and robust ecosystem, the vesting contract allocates the distribution of acquired coins to Pre-Seed participants in a manner that emphasizes longevity, stability, and the collective welfare of the ecosystem.
Under the terms of the vesting contract, Pre-Seed participants will experience a phased release of their acquired coins. Specifically, they will have the opportunity to access 25% of their total acquired coins every quarter. This measured approach aligns with CratD2C's overarching strategy to promote a healthy and vibrant ecosystem that thrives on collaboration, participation, and long-term engagement.
The rationale behind this innovative idea is multi-faceted. Firstly, the cliff period and vesting contract serve as safeguards against abrupt and excessive selling pressure on the market that could potentially lead to volatility. By mandating a gradual release of coins over time, the ecosystem remains shielded from disruptions that can be detrimental to the project's sustainability and growth.
Secondly, the vesting contract enhances the commitment of Pre-Seed participants to the CratD2C ecosystem. By incentivizing participants to remain actively engaged over a more extended period, CratD2C ensures that stakeholders are aligned with the project's long-term success, fostering a strong sense of community and collaboration.
Lastly, the gradual release of coins also promotes a stable and predictable growth trajectory for the project. As vested participants continue to contribute to the ecosystem's development, their gradual access to acquired coins facilitates ongoing participation and investment in CratD2C's vision.
In essence, the completion of the CratD2C Pre-Seed phase marks the initiation of a well-structured cliff period and vesting contract. This approach embodies CratD2C's dedication to building a sustainable, robust, and community-oriented ecosystem that stands resilient against market turbulence while fostering a spirit of enduring engagement and collaboration among participants. Below is the Periodic Coin Release Schedule with Corresponding Percentage Amounts:
CLIFF PERIOD & VESTING ROUNDS CAREFULLY EXPLAINED: A comprehensive explanation of the CratD2C Decentralized Autonomous Smart Chain Cliff Period and Vesting Rounds:
Cliff Period: The Cliff Period of CratD2C Decentralized Autonomous Smart Chain represents an initial phase of coin distribution designed to ensure a fair and controlled release of coins into the market. This period spans 3 months, commencing from the first day of CratD2C Coin's listing on centralized exchanges. During this phase, participants who took part in the Pre-Pre Seed and Pre-Seed Rounds will not be able to sell their acquired coins. This restriction is in place to prevent abrupt market fluctuations that could potentially undermine the stability of the CratD2C ecosystem.
Stability and Gradual Introduction: The 3-month Cliff Period of CratD2C ensures that a sudden influx of coins into the market is avoided. This measure helps in maintaining price stability and protecting the interests of both early participants and the broader ecosystem.
Building Confidence: The Cliff Period instills confidence in participants by demonstrating the project's commitment to gradual and measured coin release, thereby fostering a sense of trust and stability within the community.
Controlled Market Dynamics: The Cliff Period prevents speculative trading and excessive price volatility that often accompanies coin launches. It enables a controlled and calculated entry of coins into the market.
Vesting Rounds: The CratD2C Vesting Rounds are an essential mechanism for ensuring a steady and controlled release of coins acquired during the Pre-Pre Seed and Pre-Seed Rounds. These acquired coins are subject to a scheduled release, with 25% of the total acquired coins becoming accessible each quarter after the official Cliff Period expiration. VC / Angel have a separate vesting contract from that of crowd-sales. The Vesting Period provides several advantages:
Long-Term Commitment: By implementing a Vesting Period, CratD2C encourages long-term commitment among participants. This approach aligns the interests of the participants with the project's long-term success, discouraging short-term speculation.
Steady Coin Circulation: The gradual release of coins through the Vesting Period prevents a sudden oversupply of coins in the market, promoting a balanced circulation that contributes to price stability.
Mitigation of Dumping: The Vesting Period curbs the possibility of participants immediately selling off their acquired coins, thereby avoiding potential "coin dumps" that could adversely affect coin prices across multiple markets.
In summary, both the Cliff Period and Vesting Period of CratD2C Decentralized Autonomous Smart Chain play integral roles in fostering a stable, sustainable, and robust ecosystem. These mechanisms ensure controlled coin release, discourage speculative trading, and encourage participants to be actively engaged in the project's long-term growth and success.