Discussion to extend vesting schedule for locked stakeholders

💬 Governance Discussions
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Opening:

As a lead investor who believed in Lava’s potential from the earliest stages, we have witnessed firsthand the incredible growth this project has achieved in a relatively short time. With a substantial stake in Lava, we share in both the success and risks, and we strongly believe that aligning our token unlock schedule with Lava’s ongoing development is essential for maximizing value and fostering stability.

Story of Lava’s Launch and Early Growth

  • Initial Funding: The private TGE in January 2024 marked a key milestone in establishing Lava’s vision, enabling the development of the core technology further.
  • Testnet Success: Lava quickly gained traction on Testnet, securing multiple partnerships and generating nearly $2M ARR, before full Mainnet launch.
  • Demand for Token Utility: As usage grew, it became clear that Lava needed a Mainnet token to unlock its token utility and enhance network security. Operating on an insecure testnet environment highlighted the necessity of migrating to Mainnet.
  • Pre-Launch Decision: To address this need, the Foundation executed a pre-launch on DEXs in August 2024. This kickstarted the migration from Testnet to Mainnet and allowed for early Mainnet pools deployment. The migration is still in process and more pools are expected to be deployed on mainnet in the coming months.

Achievements and Growth Potential

Lava’s achievements to date and potential for continued growth give us confidence that, with more strategic timing on token unlock, they can find great success:

  • Infrastructure Backbone: Lava powers 40+ blockchains and supports over 6 million unique users each month, seamlessly integrating into everyday interactions across the ecosystem.
  • Revenue Growth: Already generating around $2M ARR, and distributed over $250k to the pools on Testnet. Lava’s Mainnet expansion is set to further strengthen its financial standing and distribute chains’ native tokens as rewards to contributors.
  • Key Partnerships & Adoption: The migration to Mainnet has paved the way for critical integrations, expanding Lava’s reach and influence among ecosystems
    • On top of the 40+ supported chain, over $1M in network revenue across 12 incentive pools, so far with 100% retention
    • Serving hundreds of dapps and over 8m unique users last 7 days, serving over 90b relays
    • Collaborating with leading enterprises, including Google, Fireblocks, eToro, and more.
  • Increasing Token Utility: With introduction of pools.lavanet.xyz & bundled staking rewards, Lava token holders are increasingly better rewarded for their contributions. Staking and restaking LAVA helps secure the network and boost RPC for different chains, while earning tokens from those chains. LAVA token utility is improving every month.

Rationale for Lockup Extension

For the ecosystem and the open market, the August pre-launch should have effectively marked the start of the vesting period, which would have provided Lava with 8 additional months before the first unlock. Without an extension, the upcoming unlock in January may hinder Lava’s ability to reach the most favorable listing venues, potentially affecting its long-term distribution.

Extending the lockup by 1 year until January 2026 not only gives Lava the necessary time to secure the best possible market position but also signals a strong vote of confidence from the community. This show of support can help build momentum and strengthen market perception, ultimately benefiting all token holders as Lava advances through this critical phase.

This 12 month extension would:

  • Ensure Market Confidence: Demonstrates long-term commitment, reassuring the community and showcasing Lava’s ongoing traction.
  • Enhance Network Stability: Supports a more stable token environment, preventing undue short-term sell pressure.
  • Enable Full Mainnet Rollout: Provides the necessary time to solidify Mainnet deployment, ensuring Lava’s capacity to support a robust infrastructure backbone.

Next Steps

This discussion is non-binding and intended to gather community feedback. As an early supporter with a vested interest in Lava’s success, I encourage all members to share their thoughts. Our collective input will help shape the final stages of this proposal to reflect our shared vision for Lava.

In addition to gathering feedback, the next stage will involve submitting an on-chain proposal to formally support this initiative. This will provide the community with the opportunity to vote directly on the proposed lockup extension, ensuring transparency and decentralized governance in line with Lava’s ethos.

About Tribe

Tribe Capital, founded in 2018, a San Francisco-based venture capital firm managing over $1.6 billion in assets. We invest across various sectors and stages, from seed to growth, focusing on identifying and amplifying early-stage product-market fit to discover companies with the potential to become unique market leaders

Tribe Crypto has been actively investing since 2021, aiming to bring our data-driven processes to early stage crypto investing. You can find out more about us here: Crypto - Tribe Capital

20 Likes
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I think it’s a good idea to extend the vesting schedule

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Silent Validator support this proposal.

LAVA is a project with real income and utility. In just four months, it has successfully onboarded over 40 chains, processed more than 90 billion requests, and launched 10+ active incentive pools.

In my opinion, extending the lock-up period would grant LAVA valuable time to further scale. Just imagine the potential: how many more chains could LAVA onboard in the coming year, and how much greater could its utility and income grow?

4 Likes
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This good to extend vesting schedule and it more buying or bag lava token. lots people to bought and stake it.

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The step worthy of respect!

Large investors are confident in the long-term potential of the LAVA network. This could attract more long-term participants, reduce short-term speculation, and strengthen the token price.

Moreover, there is an opportunity to reinvest blocked funds in providers and validators and receive additional income. Which will provide strong support to the entire ecosystem.

Stake Village supports this proposal!

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Looks great though vesting is not so good imo

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I believe extending the vesting schedule is a smart move.

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As Impulse, validators and providers in Lava since its early days, we’ve witnessed firsthand the project’s incredible growth and potential. Lava has established itself as a cornerstone of decentralized infrastructure, powering plenty of chains, processing billions of relays, and generating real income.

Extending the lock-up period would allow Lava to align token unlocks with key milestones like the full Mainnet rollout and expanding its ecosystem. This stability benefits both participants and the network by preventing short-term sell pressure while paving the way for greater adoption.

Having worked on many projects, we see Lava’s team as one of the most professional and collaborative in the space. With its robust vision and utility, Lava has the potential to onboard even more chains, grow its revenue, and enhance its value for all stakeholders in the coming year.

We strongly believe this proposal is a step in the right direction for the project’s future.

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Assuming that the vested LAVA still has access to staking? If extending the unlock by 12 mths helps improve the market conditions and can be afforded by all involved, then all for increasing the lock by 12 mths.

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nice to extend…with the vested resataked

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I strongly disagree with this proposal.

You want to distribute the token when conditions are estimated to be perfect and ATTENTION to further build the community and network is the highest. You cannot control who is going to sell or not sell at any time, you simply have to launch at a time when you feel the project has the best shot at gaining more awareness and building a stronger community. The goal should be boosting network effect, not price controls on the token.

It’s hard to imagine a better market environment than the one we see today where major governments, corporations and more are embracing crypto for the first time. At some point you have to distribute tokens if you’ve funded the company in this way. I can’t imagine a better market environment than what we see today…

At some point investors WILL receive tokens. Get the investor lockup out of the way now versus in one year when new community members have potentially purchased tokens at a high valuation. If the concern is the unlock will hurt the token price, that is good for new investors!! Let the sellers get out and move forward in the best possible market environment. Why potentially create the same low float / high FDV price chart that plagues so many crypto projects? The long term success of Lava will be hampered by a chart that looks awful after the first 18 months. The community will be frustrated and the network effect incentivized by the token will have been broken.

IMO you want current investors to receive tokens when the market is able to best provide enough demand for any sell pressure that may occur. Pushing lockup schedules to a market environment that may not be as attractive as the one today adds risk to the network effect the token is supposed to provide. The goal of a token is to incentivize the community and help build the network effect of the project. Why push the lockup away from this market???

Perhaps a shorter vesting extension (3-6mo) can accomplish all goals?

GMagma!

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You raise some valid points, but I have to disagree.

While today’s market conditions are favorable, they are not the sole determinant of success. Lava’s ability to deliver robust utility and infrastructure will be the true driver of demand and long-term value.

Unlocking tokens too soon without strong utility risks creating the exact price chart issues you mention. By extending the lock-up, Lava can ensure the network effect is supported by utility, staking rewards, and real adoption - not short-term speculative activity.

A shorter extension (e.g., 6 months) might achieve the same objectives, balancing your concerns with the need for stability during this critical growth phase, but today’s roadmap highlights that the next year will be highly productive and critical for the project’s development, making this extension a strategic decision. I think this is the key moment here.

This proposal isn’t about price control but ensuring the ecosystem matures enough to sustain growth. Timing token unlocks to match utility expansion protects both early and new investors while driving lasting success.

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I understand the points you make, the big difference in opinion I think is that I view broader market conditions as most important. Historically for a token to be successful you need the broader crypto market to resemble today’s market.

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Your thoughts are appreciated. While we may differ in our views on timing, I truly hope for Lava’s success and believe that, with the right steps, it has the potential to prosper regardless of the approach the community takes :volcano:

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Friends, we think that this is amazing!
This is a totally green flag!
We are proud to validate network with a such responsible investors!

We can expected, that investors will ask to decrease vesting, but we didn’t expect that investors will ask to increase vesting! :mechanical_arm:

Such stakeholders accelerate the development of web3! :clap: :clap: :clap:

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I’m in support of this. It makes sense to keep these tokens locked up until we gain better traction. While Lava has made great strides in terms of adoption it’s still early days and many are not familiar with Lava at this stage. While Lava is still gaining momentum there is work to be done still. Would hate to see negative pressure on that before we even get rolling.

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Support it!

The entire concept of Proof of Stake (PoS) revolves around voluntary token locking to enhance network security. Voluntary token locking is beneficial for network stability. The more tokens staked, the greater the security provided to the network.

Additionally, these tokens belong to the investors, and ultimately, it is their decision on how to manage their assets. If I understand correctly, this proposal pertains to locking Tribe Capital’s tokens. If this is a consensus decision, I don’t see any reason to oppose it

1 Like
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Well done guys, incredible move!

Early investors have declared the potential of the Lava Network, and the lava is likely to continue to erupt!

Endorphine Stake supports the proposal and will continue to support all necessary infrastructure for the network. We are delighted to be one of the RPC providers.

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As investors and validators, we fully agree with you. In our opinion, it is possible to unlock 100% of tokens. Experience with memecoins shows that having 100% of tokens in the market is the best strategy. This approach prevents concerns about future unlocking that might lead to a price drop. Instead, there will be a change of hands, and then the price will start to rise. We believe that having 100% of tokens in the market is the best option.

We believe that blocking the tokens for another year will suggest insecurity and fearfulness.

Retail dislikes tokens with a risky supply; for them, the more tokens in the market, the better. To avoid getting dumped due to blocking, you need to unblock all tokens.

1 Like
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I think i like the idea to extend the vesting schedule. encourages team that theyre trusted and that’s good for the community.