Mandatory 40-60% Purchase with Structured Vesting
Executive Summary
Companies tokenizing their securities through OTC Meme Corp. must purchase between 40-60% of all minted tokens immediately upon creation. This mandatory purchase demonstrates market confidence, provides initial liquidity, and strengthens the tokens' classification as non-securities.
⚡ Critical Requirements:
- 🪙 Purchase Amount: 40-60% of 1 billion tokens (company selection)
- 💰 Payment: Must be 100% pre-funded before minting
- ⚡ Execution: Automatic via smart contract within seconds of minting
- 📅 Vesting Schedule: Strict 20-30-20-30 release structure over 12+ months
⏱️ Vesting Timeline:
- 🟢 20% unlocked at minting - immediate liquidity
- 🟡 30% unlocked at Raydium graduation - typically within 30 days
- 🟠 20% unlocked 6 months after graduation
- 🔴 30% unlocked 12 months after graduation
This structure ensures long-term alignment between the company and token holders while preventing immediate dumping that could harm the ecosystem.
📊 Part 1: Mandatory Purchase Requirements
📈 1.1 Purchase Percentage Range
📋 Requirement: 40-60% of Total Supply
Companies must select and commit to purchasing a specific percentage within this range:
Percentage | Tokens Purchased | Day 1 Available (20%) | Day 1 Vested (80%) | Notes |
|---|---|---|---|---|
⚪ 40% | 400,000,000 | 80,000,000 | 320,000,000 | Minimum requirement, maximum public float |
🔵 45% | 450,000,000 | 90,000,000 | 360,000,000 | Balanced approach |
🟡 50% | 500,000,000 | 100,000,000 | 400,000,000 | Equal company/public split |
🟠 55% | 550,000,000 | 110,000,000 | 440,000,000 | Company majority position |
🔴 60% | 600,000,000 | 120,000,000 | 480,000,000 | Maximum allowed, minimum public float |
🎯 Rationale for 40-60% Range:
- 📉 Below 40%: Insufficient demonstration of company commitment
- 📈 Above 60%: Reduces public float too much, could appear manipulative
- 🎯 Sweet Spot: 45-50% provides optimal balance with manageable vesting
⏰ 1.2 Timing Requirements
⚡ IMMEDIATE Purchase with Vesting
The purchase executes immediately but tokens vest over time:
⏱️ Purchase Timeline:
├── T-24 hours: Funds must be in escrow
├── T-0: Token minting occurs
├── T+0 seconds: Smart contract executes company purchase
├── T+0: 20% of purchased tokens available
├── T+0: 80% of purchased tokens enter vesting contract
└── T+4 hours: Maximum window if manual intervention needed📅 Vesting Timeline:
├── Minting: 20% available immediately
├── Graduation (~Day 10-30): +30% available (50% total)
├── 6 Months Post-Grad: +20% available (70% total)
└── 12 Months Post-Grad: +30% available (100% total)💰 1.3 Pre-Funding Requirements
💳 Full Payment in Advance
Companies must fund the entire purchase amount upfront, even though 80% will be vested:
🧮 Calculation Examples at $0.00001 per token:
Percentage | Total Tokens | Investment Cost | Immediate Available | Vested Tokens |
|---|---|---|---|---|
⚪ 40% | 400,000,000 | $4,000 | 80M tokens | 320M tokens |
🔵 45% | 450,000,000 | $4,500 | 90M tokens | 360M tokens |
🟡 50% | 500,000,000 | $5,000 | 100M tokens | 400M tokens |
🟠 55% | 550,000,000 | $5,500 | 110M tokens | 440M tokens |
🔴 60% | 600,000,000 | $6,000 | 120M tokens | 480M tokens |
📋 Pre-Funding Process:
- 📊 Company selects percentage (40-60%)
- 🧮 Calculates total cost for ALL tokens (including vested)
- 💰 Deposits full amount in USDC or SOL into escrow
- ✅ OTC Meme verifies funds
- 🏛️ Empire Stock Transfer confirms before accepting shares
- ⚡ Funds execute purchase at minting (20% liquid, 80% vests)
📅 Part 2: The Vesting Schedule
📊 2.1 Four-Stage Release Structure
Stage | Event | Unlock % | Cumulative % | Timeline |
|---|---|---|---|---|
🟢 1 | Token Minting | 20% | 20% | Day 0 |
🟡 2 | Raydium Graduation | 30% | 50% | Day 10-30 |
🟠 3 | 6 Months Post-Graduation | 20% | 70% | ~Day 190-210 |
🔴 4 | 12 Months Post-Graduation | 30% | 100% | ~Day 375-395 |
📈 2.2 Detailed Vesting Stages
🟢 Stage 1: Initial Release (20% at Minting)
- 📊 Percentage: 20% of company's purchase
- ⚡ Availability: Immediate upon token creation
- 🎯 Purpose: Provides operational liquidity
- 💼 Use Cases: Market support, initial operations, early incentives
🟡 Stage 2: Graduation Release (30% at Raydium Launch)
- ⚡ Trigger: Token reaches $69,000 market cap
- 🔄 Migration: From bonding curve to Raydium DEX
- ⭐ Significance: Largest single unlock rewards successful launch
- 💪 Incentive: Strong motivation to promote token
🟠 Stage 3: Mid-Term Release (20% at 6 Months)
- ⏰ Timer Start: Day of Raydium graduation (not minting)
- 🎯 Purpose: Treasury management flexibility
- 💼 Use Cases: Employee compensation, growth initiatives
🔴 Stage 4: Final Release (30% at 12 Months)
- ⏰ Timer Start: Day of Raydium graduation
- 🎯 Purpose: Long-term alignment reward
- 🏆 Result: Full liquidity achieved
📊 2.3 Visual Vesting Timeline
📝 Example: 50% Purchase (500M Tokens)
MINTING GRADUATION 6 MONTHS 12 MONTHS
| | | |
├─ 100M (20%) ────┤ | |
| | | |
| ├─ 150M (30%) ──┤ |
| | | |
| | ├─ 100M (20%) ────┤
| | | |
| | | ├─ 150M (30%)
Day 0 Day 10-30 Day 190-210 Day 375-395
(typical) (from grad) (from grad)
Available: 100M ──► 250M ──► 350M ──► 500M
Locked: 400M ──► 250M ──► 150M ──► 0
Percent: 20% ───► 50% ───► 70% ───► 100%🤔 2.4 Special Considerations
❓ What if Token Never Graduates?
- 🏢 Company keeps only 20% liquid indefinitely
- 🔒 Remaining 80% stays locked until graduation
- 💪 Creates strong incentive for company to promote token
- 🤝 Aligns company and community for success
❓ Can Vesting Be Accelerated?
- ❌ No - vesting schedule is immutable
- 🤖 Coded into smart contract permanently
- 🚫 Cannot be changed by any party
- ✅ Provides certainty to all token holders
📈 Secondary Market Purchases:
- 🪙 Tokens bought on secondary market are NOT vested
- 📊 Only the initial 40-60% purchase has vesting
- ⚡ Secondary purchases are immediately liquid
- 👛 Different wallet recommended for tracking
🚫 Part 3: Company Restrictions & Permissions
⛔ 3.1 Permanent Restrictions (NEVER Allowed)
❌ Cannot Redeem Tokens for Shares
- 🏢 Company tokens CANNOT be exchanged for Series "M" shares
- 🤖 Smart contract permanently blocks all company redemption attempts
- 📊 Applies to ALL company tokens (vested or unvested)
- 🚫 No exceptions ever
❌ Cannot Manipulate Price
- 🚫 No wash trading between company wallets
- 🚫 No coordinated buying to pump price
- 🚫 No artificial sell walls to suppress price
- 🚫 No misleading announcements about token plans
❌ Cannot Access Reserved Shares
❌ Cannot Burn Tokens
- ⚖️ Would break 1:1 backing ratio with shares
- 📊 Total supply must remain at 1 billion
✅ 3.2 Permitted Activities
✅ Can Hold Vested Tokens
- 🔒 No forced selling requirements
- ♾️ Can maintain position indefinitely
- 💪 Demonstrates long-term commitment
✅ Can Sell Vested Tokens
- 💰 Once vested, tokens can be sold on open market
- 📋 Must follow insider trading policies
- 📊 Should establish 10b5-1 plans if regular selling
- 🏛️ Proceeds go to company treasury
✅ Can Distribute Vested Tokens
- 👨💼 Employee incentive programs allowed
- 🎁 Community rewards acceptable
- 🤝 Advisor/consultant compensation possible
- ✅ Must use vested tokens only
✅ Can Buy More on Secondary Market
- 📈 Additional purchases allowed anytime
- ⚡ New purchases are immediately liquid (no vesting)
- 🚫 Still cannot redeem any tokens for shares
- 💸 Subject to normal trading fees
⚙️ Part 4: Implementation Process
✅ 4.1 Pre-Minting Checklist
👥 Board Approval Required:
- 📊 Approve 40-60% purchase percentage
- 💰 Authorize funding amount ($4,000-$6,000)
- 📅 Understand vesting schedule (20-30-20-30)
- 🔒 Acknowledge permanent share commitment
- 👛 Designate company wallet addresses
- 📋 Establish token management policy
💰 Funding Preparation:
- 🧮 Calculate exact USDC/SOL needed
- 💸 Include 0.4% for transaction fees
- 📊 Add 5% buffer for price variation
- 📤 Transfer to designated escrow wallet
- ✅ Verify funds 24 hours before minting
👛 Wallet Setup:
- 🏛️ Create company treasury wallet
- 💼 Create separate operational wallets
- 📤 Provide all addresses to OTC Meme
- 🔐 Test wallet access and security
⚡ 4.2 At Minting Event
🤖 Automatic Execution:
- 🔍 Oracle verifies 1B Series "M" shares in custody
- 🪙 Smart contract mints exactly 1B tokens
- 💰 Company purchase executes instantly
- 🟢 20% tokens transfer to company wallet
- 🔒 80% tokens lock in vesting contract
- 📈 Remaining tokens go to bonding curve
- 🚀 Public trading begins immediately
✅ Verification Points:
- 🏛️ Empire Stock Transfer confirms purchase
- ⛓️ On-chain transaction visible to all
- 📅 Vesting schedule activated
- 🟢 Company receives 20% liquid tokens
- 📄 OTC Meme provides documentation
📈 4.3 Post-Minting Strategy
🚀 Immediate Focus (Days 1-30):
- 🎯 Drive graduation to Raydium ($69,000 market cap)
- 👥 Build community engagement
- 💡 Strategic use of initial 20% liquidity
- 📉 Avoid selling pressure
🎯 Mid-Term Goals (Months 1-6):
- 📈 Sustain trading momentum
- 🔓 Prepare for 6-month unlock
- 💡 Develop utility and use cases
- 👨💼 Plan employee distribution programs
🏆 Long-Term Vision (6-12+ Months):
- ✅ Execute on roadmap milestones
- 🔓 Manage vesting unlocks responsibly
- 🏛️ Maintain significant token holdings
- 🌱 Build sustainable ecosystem
💰 Part 5: Financial Considerations
📊 5.1 Cost-Benefit Analysis
💸 One-Time Costs:
- 🪙 Token purchase: $4,000-$6,000
- ⚖️ Series "M" legal fees: $5,000-$10,000
- 💰 Total Investment: $9,000-$16,000
🚫 Eliminated Annual Costs:
- 📈 Market maker fees: $60,000-$300,000
- 📋 Compliance maintenance: $82,000-$210,000
- 📢 IR/Promotion: $91,000-$303,000
- 💰 Annual Savings: $233,000-$813,000
📈 ROI Timeline:
- ⚖️ Break-even: Within first month
- 📊 10-year savings: $2.3M-$8.1M
- ♾️ Perpetual value: Infinite
💧 5.2 Liquidity Planning with Vesting
Milestone | Available Tokens | Use Cases |
|---|---|---|
🟢 Day 1 | 100M tokens (20%) | Operations, market support |
🟡 Graduation | 250M tokens (50%) | Cost recovery, growth |
🟠 6 Months | 350M tokens (70%) | Expansion, rewards |
🔴 12 Months | 500M tokens (100%) | Full flexibility |
💼 5.3 Tax and Accounting Treatment
🧾 Tax Implications:
- 💰 Initial purchase: Not taxable (asset exchange)
- 🔓 Vesting events: Generally not taxable (already owned)
- 💸 Token sales: Capital gains/losses when sold
- ⏰ Holding period: Starts at purchase, not vesting
📊 Accounting Treatment:
- 📋 Record full purchase as intangible asset
- ⚠️ Note vesting restrictions in disclosures
- 🔄 Reclassify from restricted to unrestricted at each unlock
- 📊 May require mark-to-market valuation
⚠️ Part 6: Risk Management
🛡️ Key Risks and Mitigations
Risk | Impact | Mitigation |
|---|---|---|
🚫 Token doesn't graduate | 80% remains locked | Active promotion, community building |
📊 Price volatility | Vested tokens may lose value | Long-term perspective, low cost basis |
💧 Liquidity constraints | Limited to 20% initially | Plan operations accordingly |
📉 Market dumps at unlocks | Price pressure | Transparent communication of schedule |
📋 Regulatory changes | Compliance requirements | Structure as utility token |
❓ Part 7: Frequently Asked Questions
❓ Q: Can we purchase less than 40%?
❌ A: No. 40% is the absolute minimum. This requirement is non-negotiable and coded into the smart contracts.
❓ Q: Can we purchase more than 60% initially?
❌ A: No. 60% is the maximum for initial purchase. You can buy more on the secondary market later (those tokens won't be vested).
❓ Q: What happens if we don't pre-fund?
⛔ A: The minting cannot occur. Empire Stock Transfer will not accept your Series "M" shares without verified pre-funding.
❓ Q: Can we get our shares back if token price crashes?
❌ A: No. The Series "M" shares are permanently committed. You can sell tokens (subject to vesting) but cannot reclaim shares.
❓ Q: How much can we sell immediately at minting?
🟢 A: Only 20% of your initial purchase is immediately tradable. The remaining 80% vests over time based on graduation and time milestones.
❓ Q: What triggers the 30% unlock?
🎯 A: When your token graduates from the bonding curve to Raydium (typically at $69,000 market cap), an additional 30% unlocks.
❓ Q: What if our token never graduates to Raydium?
⚠️ A: You'll only have access to the initial 20%. The remaining 80% stays locked until graduation occurs. This incentivizes promoting the token.
❓ Q: Can we accelerate the vesting schedule?
❌ A: No. The vesting schedule is immutable and coded into the smart contract. It cannot be changed by any party.
❓ Q: Do tokens we buy on secondary market have vesting?
✅ A: No. Only your initial 40-60% purchase has vesting. Any tokens bought later are immediately liquid.
❓ Q: Can we use vested tokens to pay employees?
✅ A: Yes, once tokens are vested and available, they can be distributed for compensation, incentives, or rewards.
❓ Q: Can vested tokens be redeemed for shares?
❌ A: No. Company tokens (whether vested or unvested) can NEVER be redeemed for Series "M" shares.
❓ Q: When does the 6-month timer start?
📅 A: The 6-month and 12-month clocks start on the day of Raydium graduation, not from the minting date.
❓ Q: Do we pay fees on our initial purchase?
💰 A: Yes. The standard 0.4% fee (0.3% OTC Meme, 0.1% Empire) applies to all transactions.
❓ Q: Can we change our percentage after committing?
❌ A: No. Once documented in the agreement, the percentage is fixed.
🎯 Strategic Recommendations
🏆 Optimal Approach: 45-50% Purchase
💡 Why This Range:
- ⚖️ Balanced company/public ownership
- 💰 Manageable funding requirement ($4,500-$5,000)
- 💧 Sufficient Day 1 liquidity (90-100M tokens)
- 🎯 Strong market presence without over-concentration
🚀 Graduation Strategy (Critical for 30% Unlock)
👥 Community Building
- 📱 Launch strong social media presence
- 💬 Create Telegram/Discord communities
- 🔄 Regular updates and transparency
- 🎁 Engagement incentives
📈 Market Support
- 💡 Strategic use of initial 20%
- 📉 Avoid early selling pressure
- 📊 Build buy-side interest
- 🎯 Target: $69,000 market cap in 10-30 days
📢 Communication Plan
- 📣 Announce vesting schedule publicly
- 🏆 Share milestones as achieved
- 🔍 Build confidence through transparency
- 🔄 Regular holder updates
🏁 Conclusion
The OTC Meme token purchase requirement creates a framework for sustainable market development. The mandatory 40-60% purchase demonstrates commitment, while the 20-30-20-30 vesting schedule ensures long-term alignment with token holders.
🛡️ This structure protects all stakeholders:
- 🏢 Companies gain permanent market infrastructure at fraction of traditional costs
- 🪙 Token holders are protected from immediate dumps
- 🚀 Platform ensures only serious, committed participants
The vesting schedule particularly incentivizes companies to actively promote their tokens to achieve Raydium graduation, where 50% of holdings become available. This creates a powerful alignment of interests during the critical launch phase.
🔑 Key Success Factors:
- 📋 Understand the vesting timeline before committing
- 📊 Plan operations around 20% initial liquidity
- 🎯 Focus intensely on achieving graduation
- 📢 Communicate transparently with community
- 🏗️ View this as long-term infrastructure investment
🧠 Remember:
- 📊 Purchase is mandatory (40-60%)
- 💰 Payment is 100% upfront
- 🔒 Vesting is immutable (20-30-20-30)
- 🔗 Shares are permanently committed
- ❌ Tokens can never be redeemed for shares
- 🎯 Success requires active participation
📝 This document is for informational purposes only. The requirements and vesting schedule described are non-negotiable and coded into smart contracts. Consult with legal, tax, and financial advisors before proceeding with tokenization.