How to Lock Your Own Tokens
Last updated
Last updated
Step One: Go to view your account on Realms.
Step Two: Deposit your tokens.
Step Three: Click "View" in the right hand corner of the "Your Account" section of the page. See the image under Step One.
Step Four: To lock your tokens, click "Lock Tokens".
Step Five: Select the "Lockup Type", the amount of tokens to lock, and the duration of the lockup.
There are two lockup types: "Cliff" and "Constant". You may have heard the term "Cliff" before when discussing investor, or team token lockup schedules.
Example: "The Team's token allocation is vested for four years with a one year Cliff."
This means that no tokens are unlocked for the first year of the vesting schedule. Then after one year, 25% of the vested amount are unlocked. After the Cliff ends, the remaining vested tokens are unlocked at a Constant rate each month until the end of the vesting schedule. For an example using the PSY Token Unlock Schedule, see our page on the matter here.
Step Six: After setting your lockup schedule, and clicking "Lock Tokens" you will now be able to see information regarding your lockups from the Account page.
If you selected "Constant" Lockup, you may be wondering why you have to change it to "Cliff" to start the unlock! See the image above.
Given the current structure of the PsyFi DAO, we have no need for that use case, BUT it can be useful if:
The DAO has a configuration where tokens locked for X years have a Y multiple of voting power (where Y is grater than 1). Example: if your tokens are locked for 4 years you get a 4x multiplier.
The token holder isn't planning on selling tokens, and really wants to keep that multiplier. If the token holder chose a 4 year cliff the lock up time starts slowly decreasing. On day 0 they would have ~4x multiple voting power, but after 2 years they would only have a 2x multiple. The constant lock up is best for holders who are looking to keep a constant voting multiple. Then when they want to start the unlock period they can convert to cliff, and start the 4 year countdown.
