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Founder Allocation

1 min read
Pronunciation
[fown-der al-uh-kay-shun]
Analogy
Founder allocation is like granting equity to a startup’s co‑founders that vests as the company achieves milestones.
Definition
Portion of tokens specifically designated for project founders, often a subset of team allocation with tailored vesting terms.
Key Points Intro
Founder allocations incentivize founders via:
Key Points

Custom vesting: May have longer cliffs or slower vesting than general team.

Milestone‑based release: Tied to product launches or funding rounds.

Governance rights: Often accompanied by governance privileges.

Lock‑up enforcement: Smart contracts prevent early sale.

Example
Founders receive 10% of tokens with a 2‑year cliff and 2‑year linear vesting, releasing only after mainnet launch.
Technical Deep Dive
Founder vesting contract extends standard vesting with milestone checks: uses an `onlyWhenMilestoneReached` modifier. Milestone flags set by DAO after on‑chain proof of achievement, triggering additional `release()` allowances.
Security Warning
DAO‑controlled milestone flags can be manipulated; ensure multi‑sig or timelock on milestone approvals.
Caveat
Overly restrictive vesting may demotivate founders; find balanced schedule.
Related Terms
Team Allocation
Advisor Allocation
Vesting

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