Use of Smart Contracts
Salto X platform provides the token Grant Agreements between the company and the participants and translate them into a smart contract onto the blockchain. Version 1 Salto X platform runs on Polygon, an L2 chain on top of Ethereum. Smart contracts are programs used to automate the execution of an agreement so that all the parties are confident of the outcome; they cover the following actions:
- The company mints a token pool with a predefined amount of tokens for further distribution among the participants;
- The company adds the participant to the pool and reserves an exact amount of tokens and distribution parameters (cliff period, vesting date and intervals);
- The participant then gets a Non-Fungible Token (NFT) representing their rights to acquire tokens;
- Participants can claim their tokens after the cliff period ends according to vesting period.
All of this happens on the blockchain using Salto X provided smart contracts. The smart contract code and interactions are publicly visible on the polygonscan site. Salto X keeps the right to upgrade the smart contract code to mitigate bugs or add technical improvements. A more detailed description of smart contract functionality (Whimsical link to Salto X Smart Contract, downloadable as PDF).
See the smart contracts on the Polygonscan:
Bad actors could find out a flaw in the smart contract code and can mess around with data and tokens. So we are to minimise this by regular audits from third-party blockchain experts.
There is a slight chance that the Polygon blockchain can have an outage or get hacked in the worst-case scenario. Polygon blockchain is compatible with any Ethereum-like blockchain like Arbitrum, Avalanche, Fantom etc. It means that Salto X can migrate to another Ethereum side blockchain or use the Ethereum blockchain once the gas fees aren't a big issue. Salto X can transfer data and smart contracts between these Ethereum-like blockchains.
The participants and the company are fully liable regarding the safety of their digital wallets and private keys. If, for some reason, these are stolen from them, in that case, Salto X bears no liability or obligation towards the participants or the company to regain or renew or in any other way provide help.
When a participant is being added to the token vesting pool, they get an NFT certificate. This certificate is digital proof and keeps a record of the vesting plan start and end date, reserved token amount and the available token amount.
To deploy the smart contract on the blockchain, the company needs to pay the gas fees - a transaction fee to the blockchain participants that validate the transactions. Polygon blockchain uses MATIC cryptocurrency to pay for the transaction fees. Usually, that is a small fee (euro cents, under 1$) paid when creating a token pool, adding a participant, claiming tokens, and more. Additionally the participants may need to pay small amounts of gas fee to claim their tokens.