> For the complete documentation index, see [llms.txt](https://blockdeed.gitbook.io/blockdeed/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://blockdeed.gitbook.io/blockdeed/tokenomics/company-allocation.md).

# Company Allocation

#### **1. 12-Month Cliff Period**

* **"Cliff"** means that no tokens are released or accessible for the first 12 months.
* During this period, the recipient does not receive any tokens, and they must remain committed to the project.
* If the recipient leaves or fails to meet obligations within the first 12 months, they forfeit their allocated tokens.

**Example:**\
If a team member is allocated **120,000,000 BKD tokens**, they will receive **0 tokens** during the first 12 months.

***

#### **2. 48-Month Linear Release**

* After the 12-month cliff, the remaining tokens are released **gradually** over the next 48 months (4 years).
* This means the tokens are "vested" or unlocked in equal portions every month or quarter over the total period.
* The release can be **monthly, quarterly, or annually**, depending on the specific agreement.

**Example:**\
If 120,000,000 BKD tokens are allocated:

* After 12 months: **0 tokens are released.**
* From months 13 to 60 (48 months total), the remaining tokens will be released gradually.
* If released monthly: **120,000,000 ÷ 48 = 2,500,000 BKD tokens per month.**

***

#### **Why Use This Vesting Schedule?**

1. **Team Commitment:** Ensures that team members and advisors remain committed to the long-term success of the platform.
2. **Market Stability:** Prevents sudden large sell-offs of tokens, which could negatively impact the token price.
3. **Incentive Alignment:** Encourages stakeholders to contribute to the platform's growth over time.

***

#### **Summary**

* **12-month cliff:** No tokens are released in the first year.
* **48-month linear release:** Tokens are distributed in equal parts monthly or quarterly over the next 4 years.

This structure helps create long-term commitment and gradual token distribution, avoiding market disruptions and aligning the incentives of key stakeholders with the success of Blockdeed.