The KDSwap team is chipping away at that packed road map again and has just got the token locker up and running. For those wondering what this is, how it works, and what the benefits of a token locker are, this article is for you.
What is a token locker?
A token locker is primarily used to automate and enforce vesting schedules. It allows anyone to easily set the parameters of a smart contract, to make sure a specified party (for example a project dev), receives a set amount of tokens, on a given date.
This is a powerful tool that allows projects to be accountable and transparent to their investors, by providing an easy and trust-less way to confirm that team tokens are correctly vested, and match the amounts and dates of release, as promised by the team.
This also provides greater transparency and trust within a project, as any team member can see that the tokens they are entitled to are set to release when promised, and enforced by smart contracts, as opposed to waiting for a manual transfer from a project leader on the given date.
How does the token locker work?
Using the token locker is a simple process. I will use the vesting schedule of KDSwap team tokens as an example, as we will be using the locker ourselves.
The total supply is 250M KDS.
2.5% (6.25M KDS) of the total supply is reserved for the team as payment for building and maintaining the Dex.
The vesting schedule is 3.125M KDS to be unlocked after 6 months from the date of launch, and the remaining 3.125M KDS to be unlocked after 12 months.
So we simply go to the token locker on kdswap.exchange, from the total of 6.25M KDS we set a lock for each team member with their proportional amount owed and enter their respective wallet addresses, then set 50% to be unlocked on the first vesting date, and the remaining 50% to be unlocked on the last vesting date, and sign the transactions.
And that’s it. The community of KDSwap investors can now see that the correct amounts, and dates of release, are locked by smart contracts and match the promises of our team.
While the token locker was designed with the vesting schedules of teams in mind, this is DeFi, and as such, this tool can be accessed and used by anyone for any reason they would like.
Thanks for the ongoing support Swappers. More features are on the way!