Problem
In early-stage startups, co-founders are often assigned equity at the beginning. However, if a founder leaves early, disputes arise regarding how much equity they should keep.
To prevent unfair advantage, startups use a vesting system.
This repository demonstrates a simple rule-based vesting model that can later be converted into an Accord Project smart legal contract template.
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Vesting Model Used • Total Vesting Duration: 4 years (48 months) • Cliff Period: 1 year • Vesting Type: Monthly after cliff
Rules 1. If a founder leaves before 12 months → 0% equity vested 2. After 12 months → 25% equity unlocks 3. Remaining 75% vests monthly over next 36 months
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Example Calculation
If total equity = 40%
After 1 year: • 25% of 40% = 10% vested
Remaining: • 30% distributed over 36 months
Monthly vesting: • 30% ÷ 36 ≈ 0.83% per month
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Sample Scenarios
Case 1 — Founder leaves at 8 months • Cliff not completed • Vested equity = 0%
Case 2 — Founder leaves at 24 months • 12 months cliff completed • 12 additional months worked
Vested: • 10% (cliff unlock) • • (12 × 0.83%) ≈ 10%
Total vested ≈ 20%
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Why This Matters
Founder exits are one of the biggest causes of startup conflict.
This model shows how structured legal logic can: • Prevent disputes • Ensure fairness • Automate equity calculation
This logic can be converted into: • Concerto data model • TemplateMark legal clause • Ergo smart contract logic
## Future Conversion to Accord Template
This logic can be directly mapped into:
- Concerto model → Founder, Equity, Vesting Schedule
- TemplateMark → Legal clause text
- Ergo → Vesting calculation logic
This repository serves as a foundation for implementing a Founder Equity Vesting smart contract template in the Accord Project.