How do payouts work for vested and unlocked tokens?

Last updated: September 29, 2024

Understanding the Payout Process

As tokens become vested and unlocked (deliverable), they are automatically added to a payout queue. This queue allows you to manage and process payouts efficiently.

Methods of delivering tokens with Liquifi

There are generally two methods available to deliver tokens to stakeholders:

  1. Administrators pay out tokens to beneficiaries (see below for more information).

  2. Beneficiaries claim tokens directly by logging into Liquifi (only available for smart contract accounts with Liquifi).

    1. If your beneficiaries need assistance with claiming their tokens, please send them this stakeholder-facing support guide on claiming tokens.

Both methods are enabled by default in your Liquifi account. Please contact Liquifi's support team if you would like to disable claims for your beneficiaries.

Initiating a Payout

To initiate a payout, follow our step-by-step guide based on your account type:

Payout Frequency

You don't need to initiate a payout each time tokens vest. Instead, you can process payouts in bulk for all deliverable tokens at once. If all your grants release tokens simultaneously, you'll typically submit one payout transaction per vesting period (e.g., monthly).

Payout Transaction

When you initiate a payout:

  • You'll sign one transaction for all payouts in the queue.

  • You have the option to select specific payouts if you don't want to process all at once.

  • The account will enter a pending state, blocking other on-chain transactions until the payout processes (usually within 5 minutes).

Adding Grants and Payouts

You can add new grants at any time without affecting the payout process. Tokens from new grants will only become available for payout once they are vested and unlocked.

Beneficiary Claims

If you choose to require token recipients to claim their tokens:

  • Recipients can log in at any time to claim deliverable tokens.

  • Unclaimed tokens will remain in your payout queue, available for you to pay out.

  • Beneficiary claims do not impact the ability of others to claim or your ability to complete on-chain transactions as an admin.

Note: For accounts set up on a network other than Ethereum, you can schedule payouts of tokens before they are vested and unlocked.

If your account is set up on Ethereum, you cannot set up a payout transaction until the tokens are vested and unlocked.