Common unlock structures include cliff + linear vesting, pure linear vesting, milestone-based vesting, performance-based unlocks, back-weighted vesting, and front-weighted vesting. Cliff + linear remains most common because it balances stability and predictability. Performance-based vesting is emerging in contributor agreements, particularly for infrastructure protocols. The unlock structure should prioritize predictability and market clarity. The table below details various types of unlock schedules as well as their benefit and prevalence within Web3 launches:
| Type | Description | Benefit | Prevalence |
|---|---|---|---|
| Linear | Tokens are emitted at a constant rate over time, creating a predictable and steady release schedule. | Transparency & Predictability | High |
| Exponential Decay | Emissions start high and decrease rapidly, slowing over time to simulate diminishing inflation and long-term scarcity. | Rewards early participants | Medium |
| Dynamic | The emission rate adjusts automatically based on real-time factors (e.g., network activity, or staking participation) to balance incentives. | Adaptable to network participation | Medium |
| Milestone Based | Tokens enter circulation based on the protocol successfully achieving milestones such as TVL, revenue, or user growth. | Balances inflation with growth | Low |