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Description
Title: Proposal: Founder Equity Vesting Smart Contract Template
Problem
In early-stage startups, equity is usually assigned at formation, but disputes arise when a founder leaves early. To prevent unfair ownership, startups use vesting rules such as:
- 4-year vesting duration
- 1-year cliff period
- Monthly equity unlocking
- Exit-based equity adjustments
Currently, the Accord Template Library does not include any template that models time-based equity vesting or founder exit conditions. This represents a gap in the startup governance domain.
Proposed Template
I propose adding a Founder Equity Vesting smart contract template that can:
- Model vesting schedules
- Enforce cliff period conditions
- Calculate vested vs unvested equity
- Handle early exit scenarios
Supporting Work
To demonstrate feasibility, I created a working logic simulation repository:
https://github.com/Shashidar123/founder-equity-vesting-contract.git
This includes:
- 4-year vesting model
- 1-year cliff logic
- Monthly vesting calculations
- Sample exit scenarios
This can be translated into:
- Concerto model
- TemplateMark clause
- Ergo logic
Why This Matters
This introduces a new domain to the template ecosystem:
startup governance and founder agreements, which are widely used but currently not represented.
Future Scope
Related templates that can further extend this direction:
- Internship Stipend Contract (performance-based payment logic)
- Fee Refund Policy Contract (time-based refund rules in education systems)
I’d be happy to develop this into a full Accord-compatible template based on feedback.
Sample Logic Output
Below is a simple simulation of the vesting logic (4-year vesting, 1-year cliff, monthly unlock):
