Blockchain & Cryptocurrency Glossary

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Team Allocation

Pronunciation
[teem al-uh-kay-shun]
Analogy
Team allocation is like stock options granted to startup employees, vesting over time to align incentives.
Definition
Portion of a token’s supply reserved for project founders, developers, and core contributors, typically subject to vesting schedules.
Key Points Intro
Team allocations secure long‑term commitment via:
Key Points

Vesting periods: Cliff and linear release to prevent immediate sell‑off.

Lock‑up: Tokens unusable until initial cliff completes.

Performance incentives: Aligns team with project milestones.

Transparency: Vesting contract parameters on‑chain.

Example
Founders receive 15% of tokens with a 1‑year cliff and 3‑year linear vesting thereafter.
Technical Deep Dive
Vesting smart contract holds team tokens and enforces `release()` logic: computes vested amount = total × (block.timestamp – start) / duration. Uses OpenZeppelin’s `TokenVesting` module. Owner cannot withdraw unvested tokens.
Security Warning
Misconfigured vesting can allow early withdrawals; audit vesting parameters carefully.
Caveat
Excessive team share can erode community trust; balance with community incentives.
Related Terms
Vesting
Founder Allocation
Advisor Allocation
Token Allocation
Smart Contract Library

Team Allocation - Related Articles

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