Boosters & Vesting
Last updated
Last updated
Boosters and vesting are innovative mechanisms designed to give presale participants the ability to gain an edge over others in a fair and transparent manner. These features allow participants to maximize their returns by multiplying the number of tokens they receive for their investment, though this advantage comes with a trade-off: time.
How Boosters Work
Boosters offer a way to enhance the value of your investment during a presale. By selecting a booster, you increase the number of tokens you receive, making your SOL investment more impactful compared to others. However, to benefit from this multiplier, the boosted tokens are subject to a vesting period, meaning they will be locked for a specified duration after the pool launches on Orca.
Vesting Periods: Each booster must be configured with a vesting period. This is the time during which your tokens are locked and unavailable for trading. Once the vesting period ends, the multiplied tokens are released to you.
Boosters not only incentivize users to lock up their tokens, reducing the circulating supply immediately after the pool launches, but they also provide a direct reward for the time committed. This creates a dynamic and strategic element within the token distribution process.
How Boosters Affect Distribution
To better understand the impact of boosters on token distribution, let’s explore a few scenarios:
Example Setup:
Pool Target: 2 SOL
Total Tokens for Presale: 100
In a scenario without boosters, each participant receives tokens proportional to their investment. For instance, if two users each contribute 1 SOL, they both receive an equal share of the tokens—50 tokens each—available for immediate claim after the pool launch.
Introducing Boosters:
When boosters are applied, the fixed number of tokens (in this case, 100) doesn’t change, but their distribution does. Here’s how:
Booster 1: No Vesting
Multiplier: 1x
Vesting Period: None (Tokens available immediately after launch)
Booster 2: 6-Hour Vesting
Multiplier: 2x
Vesting Period: 6 hours
Booster 3: 24-Hour Vesting
Multiplier: 3x
Vesting Period: 24 hours
Scenario Analysis:
Scenario 1: Two participants each invest 1 SOL with no boosters. The distribution is straightforward—each receives 50 tokens, available immediately after launch.
User 1
1X
NO LOCK
1 SOL
50 Tokens (50%)
User 2
1X
NO LOCK
1 SOL
50 Tokens (50%)
Scenario 2: One participant invests 1 SOL using the 2x booster with a 6-hour vesting period. This alters the distribution:
User 1
1X
NO LOCK
1 SOL
33.3 Tokens (33.3%)
User 2
2X
6 Hours
1 SOL
66.6 Tokens (66.6%)
Scenario 3: One participant invests 0.5 SOL in Booster 2 (2x, 6-hour vesting) and 0.5 SOL in Booster 3 (3x, 24-hour vesting). This results in a more complex distribution:
User 1
1X
NO LOCK
1 SOL
28.57 Tokens (28.57%)
User 2
2X
6 Hours
0.5 SOL
28.57 Tokens (28.57%)
User 2
3X
24 Hours
0.5 SOL
42.86 Tokens (60%)
Efficiency in Investment:
User 1 and User 2 both receive 28.57 tokens. However, User 2 achieved this with only 0.5 SOL by using the 2x booster, effectively doubling the value of their investment compared to User 1.
Diversification Strategy:
User 2 chose to diversify their investment by splitting it between two boosters, each with different vesting periods. This strategy allowed them to maximize their token allocation while managing their exposure to vesting timeframes.
Constant Token Supply:
Despite the use of boosters, the total token supply of 100 remains unchanged. The boosters simply redistribute the tokens based on the participants' effective contributions, ensuring a fair and transparent allocation.
The entire process of using boosters and vesting is fully managed on-chain, making it a trustless and permissionless system. Here are some key points:
Immutable Calculations: All calculations and allocations occur on-chain and are hard-coded into the smart contract. This means that the distribution process cannot be manipulated or altered by any third party, ensuring complete fairness and transparency.
Secure Vesting Periods: The vesting periods associated with each booster are stored on-chain, with no ability to release the tokens ahead of the scheduled time. Once tokens are locked under a vesting period, they are inaccessible until the period ends, as dictated by the smart contract.
No Third-Party Intervention: There is no need for a third party to manage or oversee the process. The smart contract autonomously handles everything, from calculating token distribution to enforcing vesting periods.
As a presaler, selecting the right booster is crucial, but it's equally important to carefully consider the length of the vesting period associated with your choice. The vesting period dictates how long your tokens will be locked and inaccessible after the pool launches.
For instance, if you choose a booster with a 2,400-hour vesting period, you will be required to wait 100 days before you can claim your tokens. This is a significant commitment, and you need to ensure that you’re comfortable with not having access to those tokens during this period.
Before finalizing your decision, reflect on your financial needs and market expectations over the vesting period. Locking in your tokens for an extended time might offer a higher multiplier and more tokens, but it also means you’re committing to a long-term hold. Make sure this aligns with your overall investment strategy and risk tolerance.
