It’s been five months since the beginning of the vesting period, and we are finally approaching the 6-month cliff, a milestone that everyone exposed to our vesting token (vBZRX) has been patiently waiting for.

As we have previously covered, by design, vBZRX itself cannot be staked as it has no governance rights, nor can it participate in sharing fees. The holders of vBZRX have the ability to stake the underlying BZRX, which are held inside the vesting contract wrapper (vBZRX), which has a vesting period of four years with a 6-month cliff. This design means that the fees generated by BZRX from within the vesting contract are not accessible until the BZRX that generates the fees has vested.

Simply put, the vBZRX holders who have been holding the vesting contract and staking the underlying BZRX from the launch of the platform in August till the cliff end will not receive any fees until after the cliff. Post cliff, the BZRX inside the vesting contract and the subsequent fees generated during the staked period will be vested over the remaining 3.5 years. The vesting fees will remain in possession of who staked them on the staking dashboard regardless of if the vBZRX is unstaked and/or moved elsewhere.

The vesting process is linear, with a small portion unlocked every second for the entire 3.5year vesting period until they are entirely vested. There are no race conditions to claim the underlying BZRX as each vBZRX vests uniquely to the holder’s address. As this process progresses, the value of vBZRX decreases as more and more of the underlying BZRX vests. You can claim your vested BZRX at any stage on the staking dashboard.

In a sale or a transfer event of vBZRX, all BZRX that has vested up to that time will be released to the wallet holding the vBZRX, as well as to the receiver. This ensures that all vBZRX stays on the same vesting schedule. A by-product of this is that any vBZRX held in an AMM such as Balancer or Uniswap during the vesting period will slowly leak BZRX into the liquidity pool, which will be unretrievable. We are designing a workaround for this, but please ensure your vBZRX is stored within your wallet or staked in bZx for the start of the vesting period if not otherwise instructed. You can safely deposit vBZRX to the bZx staking contract and BZRX will be staked and claimable as it vests.

We want to make sure that BZRX holders understand the vesting contract’s design and how it affects their holdings. Please ensure you understand the above, and if you have any questions, please ask the team!

As always, please feel free to connect with the team via Telegram or Discord. Check out our Help Center to answer all of your questions about bZx, Fulcrum, and Torque.

About the author
Kyle J Kistner
CVO @ bZx. Product, Protocol Design, & Token Economics.