Milestone-Based Vesting

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Pronunciation

[mīl-stohn beysd ves-ting]

Analogy

Milestone-based vesting is like paying a contractor in installments as each phase of construction completes.

Definition

A model where release is triggered by the achievement of predefined project milestones rather than time alone.

Key Points Intro

Milestone-based vesting ties incentives to outcomes via:

Key Points

Condition triggers: Vesting occurs when milestones are verified.

Custom criteria: Milestones can be technical, financial, or adoption metrics.

Governance oracles: DAO or third-party oracles confirm milestone completion.

Flexibility: Adapts vesting to project progress instead of fixed time.

Example

20% of tokens vest when launches; another 20% when TVL reaches $10 million.

Technical Deep Dive

Contract holds milestones array with `target`, `deadline`, `amount`. A designated or governance contract calls `unlock(index)` upon verifying `target` met before `deadline`, transferring `amount` to beneficiary.

Security Warning

Oracles or governance may be corrupted to trigger false unlocks; implement multisig or multi‑oracle .

Caveat

Disputed milestone achievements can stall ; define clear, measurable criteria.

Related Terms

Blockchain & Cryptocurrency Glossary

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