[PASSED] SIP-002: Change Seed Investor and Ambassadors Vesting Schedule from [12 months linear] to [6 months cliff + 12 months linear]

General
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Proposed by MustStopMurad. Posted here retrospectively.

Introduction:

This proposal is for seed investors and ambassadors to synchronise with the team by also pledging a 6 month cliff before their tokens start unlocking. Token schedules are typically vested over a long period of time to ensure long term commitment and mitigate volatility. As per industry standard, a common practice to eliminate short-term gain motives is having a cliff (not less than 6 months) on seed investors and ambassadors allocation alongside a vesting period of over 1 year.

Our current token structure/schedule doesn’t reflect long-term commitment/vision from the protocol and having so much (>70% supply) tokens in circulation for the first year becomes concerning to existing investors and of course future investors undoubtedly.

Based on this, I’m proposing a 6 month cliff on seed investor and ambassadors, with a vesting period of at least a year and a half. This will reflect our long-term commitment/vision towards the protocol.

Reasons:

  1. Demonstrates long-term commitment: By implementing a cliff, the seed investors and ambassadors show that they are focused on having a perpetual succession and also committed to the success of the project in the long haul. This will help both existing and prospective investors build confidence and increase trust in the project.

  2. Aligns interest with the team and community: By not unlocking seed investor and ambassador allocation in a short-term period shows that they are committed like the team is to this project and will continue to be motivated to work and will have vested interest in the project success.

  3. Reduces volatility: While this is not undermining the presence of volatility in low market cap assets, team allocation lock can also help reduce volatility, stabilise market price, and stimulate long term holding interest.

  4. Increases confidence, transparency and trust: If their seed investors and ambassadors are not short-term driven, it shows they are then less likely to engage in activities that may be detrimental to the project.