Why Vesting and Lock-Ups Matter
When Grindery’s Token Generation Event (TGE) launches this January, some of your GX tokens will unlock immediately, while others will be subject to vesting or lock-up periods. But why?
Vesting ensures that tokens are distributed gradually over a set period, keeping everyone—from team members to investors—aligned with the project’s long-term success. Lock-ups, on the other hand, temporarily restrict the transfer or sale of tokens, preventing sudden market fluctuations and safeguarding the ecosystem.
These mechanisms are standard in Web3 projects and are critical to ensuring sustainable growth and token value.
Breaking Down Vesting
In simple terms, vesting is like receiving your paycheck in installments instead of all at once. For example:
- If you’re entitled to 1,000 GX tokens on a one-year vesting plan, you might receive 250 GX every three months.
- Similarly, if another project—let’s call it the TikiTaka token—has a six-month vesting schedule, you might receive 100 TikiTaka tokens monthly if you’re owed 600 in total.
What About Lock-Ups?
Lock-ups are like putting your tokens in a secure vault. They can’t be accessed or sold for a set period, which ensures the market isn’t flooded with tokens, stabilizing their value.
Let’s look at specific examples from our GX token distribution:
- Community Allocation One
- 8% unlocks at TGE: If you hold 1,000 GX tokens, 80 GX will be available immediately.
- 92% vests over 14 months with 3 months cliff: The remaining 920 GX will be released incrementally after the 3-month cliff period, about 83.64 GX per month, or 2.79 GX per day.
- Community Allocation Two
- 8% unlocks at TGE: For 1,000 GX tokens, 80 GX will be accessible immediately.
- 92% vests over 12 months with 3 months cliff: The remaining 920 GX will vest gradually after the 3-month cliff period, approximately 102.22 GX per month or 3.41 GX per day.
Why Should You Hold GX for the Long Term?
We’re at the beginning of an exciting journey for Grindery and the broader smart wallet market. The potential for growth is enormous, but like any early-stage market, it takes time to fully realize. Holding your GX tokens for at least a year or two could position you to benefit from the highest returns as we expand the ecosystem and grow the platform’s value.
The Role of Vesting and Lock-Ups in Web3
One of the most significant advantages of Web3 is how early users can get involved. Unlike traditional companies, where you might have to wait years for an IPO to invest, Web3 projects allow users to participate in the earliest stages.
However, this early access comes with shared responsibility. Vesting and lock-ups are safeguards to ensure everyone—including token holders—contributes to the ecosystem’s growth. Without these mechanisms, token value could be at risk due to market instability caused by sudden sell-offs.
Transitioning from Hedgey to Sablier
Earlier this year, we distributed NFTs via Hedgey to grant Grindery X (GX) token access. While this worked initially, managing over 50,000 NFTs presented technical challenges. Hedgey also experienced some additional issues, prompting us to transition to a more streamlined solution.
Enter Sablier: a token streaming platform that simplifies the distribution process. Think of Sablier as a faucet that gradually streams GX tokens into your Grindery Wallet. It’s transparent, automated, and secure—no manual claims or confusion.
How GX Token Streaming Works
- Set Up Your Wallet: If you don’t already have a Grindery Wallet, it’s easy to set up.
- Streaming Begins: Once your vesting starts, GX tokens will flow into your wallet in real time.
- Track Your Tokens: You’ll know exactly how much you’ve received and how much is left, with updates visible in your wallet.
The Takeaway
Grindery’s TGE in January will mark a significant step forward for our ecosystem. Some of your GX tokens will unlock immediately, while others will vest over time or be locked up. These mechanisms aren’t just safeguards—they’re tools designed to stabilize token value, ensure sustainable growth, and reward long-term commitment.
If you’d like to learn more about GX tokenomics, vesting schedules, or lock-up conditions, check out our detailed documentation at docs.grindery.com.
Thank you for joining us on this journey to make Web3 accessible and successful for everyone. Let’s build the future together.
