> For the complete documentation index, see [llms.txt](https://veloriz-network-ltd.gitbook.io/veloriz-network-ltd-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://veloriz-network-ltd.gitbook.io/veloriz-network-ltd-docs/veloriz-protected-launch-infrastructure/projects-token-allocation-vesting-and-private-sale-release.md). # Project's Token Allocation Vesting & Private Sale Release Controlling Supply Before It Reaches the Market Liquidity alone cannot provide a responsible launch structure if a large quantity of tokens can enter the market immediately after launch. One of the major sources of post-launch selling pressure is the release of tokens allocated to private investors, seed participants, strategic investors, advisors, founders and other early contributors. If these allocations become freely transferable at or shortly after Token Generation Event (TGE), early investors may have the ability to sell at a substantial profit while public participants are only beginning to enter the market. Veloriz therefore treats token allocation and release schedules as part of launch protection, rather than as a matter left entirely to the project team. Veloriz verify this before a project is accepted to conducted sale within the Veloriz Sale System. The objective is to ensure that the amount of tokens available to the market develops in a controlled and predictable manner. **Allocation Must Be Disclosed Before the Sale** Every project entering the **Veloriz Public Sale System** must disclose its material token allocation structure before public participation begins. The disclosure should establish the proportion of supply allocated to categories such as private or seed investors, team and advisors, ecosystem, treasury, public sale and other material allocations. More importantly, the project must disclose when those tokens can become transferable. This allows participants to understand not only the current circulating supply, but also the potential future supply entering the market. *** **Private Sale Release Methodology** Veloriz recognizes that legitimate projects may require private capital before conducting a public sale. Private investors can provide valuable resources for development, infrastructure and early-stage growth. However, private participation must not create an unfair exit opportunity at the expense of public participants. For this reason, Veloriz establishes a distinction between private allocation and private allocation that is immediately liquid. Private-sale tokens should generally be subject to a predefined lock-up and vesting schedule. The applicable schedule will depend on the project's structure, stage and risk profile, but should be designed to prevent a large proportion of privately allocated tokens from becoming freely tradable immediately after TGE. A typical structure may incorporate: Initial Lock-Up → Cliff → Gradual Vesting → Full Release Rather than allowing an entire private allocation to enter circulation at once, tokens are released progressively according to predetermined conditions. The schedule must be established before the relevant sale and must not be materially altered in a manner that disadvantages public participants. Before Projects apply to conduct a sale, these must be put into consideration. *** **Private Sales Conducted Outside Veloriz** Projects may have completed private or seed sales before applying to Veloriz for public sale. Veloriz does not intend to rewrite legitimate historical financing arrangements simply because a project later seeks access to the ecosystem. However, existing private allocations become relevant to Veloriz's launch assessment. A project seeking a Veloriz Public Sale must disclose material information concerning private allocations, including the amount allocated, the applicable purchase terms, vesting arrangements and expected release schedule. Where an existing private-sale structure creates an unacceptable concentration of immediately transferable supply, Veloriz may require the project to implement additional restrictions, restructuring, contractual commitments or other measures before approving the public launch. **Outside Private Sale Protection Principle** > Private agreements made before Veloriz cannot be used to circumvent the launch-protection standards required by Veloriz. A project cannot present one token structure to Veloriz while maintaining undisclosed arrangements capable of introducing significant additional supply into the market. Material private-sale obligations must therefore be disclosed as part of the project's launch review. Where legally and technically possible, Veloriz may require verifiable evidence of the applicable vesting and release arrangements. *** **Private Sales Conducted Through Veloriz** Private sales conducted through Veloriz will be subject to a more controlled framework. Where Veloriz provides the infrastructure for a private or strategic sale, the token allocation, investor allocation and release schedule can be incorporated directly into the ecosystem's contractual and smart-contract architecture. This allows Veloriz to establish: Who receives the allocation. How much they receive. When their tokens become transferable. How much can be released at each stage. When the allocation becomes fully vested. The purpose is to remove unnecessary reliance on manual promises. Where technically feasible, release conditions should be enforced through verifiable smart contracts, allowing the market to independently observe the applicable vesting structure. *** **Anti-Dump Protection** Veloriz's objective is not to prevent private investors from ever selling their tokens. Private investors assume risk and, subject to the applicable terms, should eventually be able to realize their investment. The objective is to prevent concentrated and premature supply release and destabilizing the market. Accordingly, Veloriz may apply measures including: a. Lock-up periods b. Cliff periods c. Linear vesting d. Staged releases d. Transfer restrictions e. Wallet-level allocation tracking f. Maximum release thresholds g. Coordinated release schedules The specific parameters will be determined according to the project's tokenomics and risk profile and disclosed before launch. *** **No Hidden Unlocks** A fundamental requirement of the Veloriz launch standard is that material token unlocks should not come as a surprise to the market. A project should not publicly communicate one circulating-supply figure while maintaining undisclosed arrangements that could materially increase effective market supply. Any material change to the approved allocation or vesting structure should be subject to the applicable Veloriz review and disclosure requirements. This creates a predictable supply environment for participants. *** **Founder & Team Alignmen**t The same principle applies to founders, employees and advisors. Team allocations should be subject to appropriate lock-up and vesting arrangements rather than becoming immediately transferable at launch. The objective is alignment. A team building a long-term project should have an economic structure that encourages it to remain committed to the project rather than creating an immediate opportunity to exit a substantial portion of its allocation. *** **Veloriz Private Sale Protection Terms** Projects participating in the Veloriz ecosystem acknowledge that: > Private investors must not receive an undisclosed or structurally unrestricted advantage over public participants through immediate token liquidity. Accordingly, the project agrees that material private-sale allocations must be disclosed and incorporated into the approved token distribution and release methodology. The project shall not knowingly create, maintain or conceal an arrangement that materially undermines the approved vesting structure or introduces significant undisclosed circulating supply. Where private-sale allocations are conducted through Veloriz, the applicable release conditions may be enforced through the designated smart-contract infrastructure. Where private allocations were created outside Veloriz, the project must provide sufficient disclosure and evidence for Veloriz to evaluate their impact on the proposed launch. Veloriz may refuse, delay or impose additional conditions on a public sale where private-sale arrangements create a material risk of uncontrolled supply release. *** **The Principle** The purpose of this framework is not to punish early investors. It is to establish fairness between early capital and public capital. Private investors may receive preferential entry because they accept early-stage risk. However, preferential entry should not automatically translate into unrestricted immediate liquidity at the moment public participants enter the market. > Early investors may earn the privilege of entering early. They should not be given the power to destabilize the market immediately after the public sale. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://veloriz-network-ltd.gitbook.io/veloriz-network-ltd-docs/veloriz-protected-launch-infrastructure/projects-token-allocation-vesting-and-private-sale-release.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.