Skip to main content
Protocol·Updated Jul 2026Standard V1.0

Team Compensation Without Token Allocation

Teams launching under PURITY are compensated exclusively in the base asset. No token allocation exists at any point — no team tokens, no discounted entry, no unlock cliffs, and no insider cost-basis asymmetry. If a team wants tokens, it buys them on the open market like everyone else.

Team compensation is the team share of liquidation proceeds ($PURE: 20%), forwarded to the launch's TeamDistribution contract at the moment each liquidation happens. That framing carries the whole incentive design: the team is paid only from realised market demand. If organic demand materialises and the engine liquidates into it, the team earns. If it never does, the team earns nothing — there is no salary drawn from launch capital, no draw on the market-making treasury, and no way to front-run the outcome.

Two structural constraints govern how that compensation is received:

Mandatory vesting. Team value does not become claimable when it arrives. Every deposit vests linearly over six months — a fixed, immutable schedule that ties the team's compensation horizon to the launch's continued life. The mechanics are on the next page, Team ETH Vesting.

Forfeiture on abandonment. If a launch ends in an Abandonment shutdown, the team's entire unclaimed balance — vested and unvested alike — is clawed back and redistributed to the participants who bore the failure. Walking away is the one outcome the compensation structure prices at zero.

The market-making treasury is never a team resource. The one path by which a team can even propose touching it — the governed treasury release — is hard-capped in code and decided by token holders, not by the team (Governed Treasury Release).