Blockchain & Cryptocurrency Glossary

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Advisor Allocation

Pronunciation
[ad-vahy-zer al-uh-kay-shun]
Analogy
Advisor allocation is like paying consultants in milestone‑vested stock options rather than immediate cash.
Definition
Portion of tokens reserved for external advisors, consultants, or partners, typically with shorter vesting to compensate advisory services.
Key Points Intro
Advisor allocations reward expertise via:
Key Points

Shorter vesting: Often 6‑12 month cliffs and vesting.

Performance conditions: May require delivery of advisory milestones.

Caps: Limited percentage to avoid over‑dilution.

Transparency: Contracts specify release schedules on‑chain.

Example
Advisors receive 5% of tokens with a 6‑month cliff and 6‑month linear vesting.
Technical Deep Dive
Advisor vesting uses similar contracts as team vesting but with distinct parameters. `TokenVesting` instances created per advisor address with `cliffDuration` and `vestingDuration`. `release()` callable by advisor after cliff.
Security Warning
Loose milestone definitions can release tokens prematurely; define clear deliverables.
Caveat
High advisor allocations can reduce community share; keep advisor pool modest.
Related Terms
Team Allocation
Founder Allocation
Vesting
Token Allocation
Smart Contract Audit

Advisor Allocation - Related Articles

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