Conviction Preferred

The opposite of an unlock.

Protect the holders you can't afford to lose. A Conviction Preferred window turns the date your holders dread into the moment they become protected owners.

PriceToken Price

0.0%

ProtectedPNL w/ Downside Protection

0.0%

FloorProtection Level

Up to -90%

Token price

The unlock, inverted

An unlock is a countdown to sell pressure. Holders watch the calendar, front-run the date, and leave — and the price wears it. It's the most predictable sell event in crypto, and every project on a vesting schedule is scheduled to relive it.

A Conviction Preferred window runs the same play in reverse. On the date, the holders you choose convert their common tokens into a protected position — a floor on the downside, full upside, funded by your treasury. The countdown stops being a sell trigger. Nothing gets dumped into the market, and the people you most wanted to keep are the ones that stay.

The unlock:

The unlock

Supply releases → holders sell → price absorbs it → your best holders leave first.

The window:

The window

Holders convert → protection turns on → no new sell pressure → your best holders stay.

Who it's for

Aim it at the holders you can't afford to lose.

ICO buyers — early backers sitting at or below their entry.
Investors — the cap table you want aligned, not heading for the door.
Power users — the traders and builders your protocol can't lose.
Protocol users — the people actually using the thing, airdrop recipients included.

You define the addresses. The window does the rest.

Why it works

Why it works.

Holders stay

Protection is something they hold for — so the cohort you convert is the cohort that sticks.

No new sell pressure

Unlike emissions or airdrops, nothing new is minted to be dumped. You convert holders you already have; you don't create sellers.

On your terms

From your treasury. You choose who, how much protection, and for how long. Your treasury funds it — and if the token holds or climbs, most of it comes back.

How it works

How it works.

1. Open the window — for the cohort you choose.

2. Holders convert — common tokens become a protected position.

3. Protection turns on — held through a short cliff, the floor goes live and your holders are owners.

The exact terms — protection level, cliff, call window — are yours to set. Model them in the planner.

FAQ

Common questions.

A preferred token is a structured onchain position that gives protected upside exposure with defined downside terms. Liquidity Preferred, Funding Preferred, and Conviction Preferred share the same family of mechanics, with different objectives and collateral framing.

Legal frameworks can help with disclosure and market rules, but they do not create this ownership and risk structure for crypto-native token holders. Preferred tokens define terms onchain through structured issuance mechanics.

A preferred token is an onchain instrument with defined downside protection and full upside exposure over a fixed term. If the underlying token drops below the floor, the holder has a predefined protection level; if it rises, the holder keeps upside participation.

User capital and project-backed collateral are structured into a protection mechanism at issuance. As long as outcomes stay above the agreed floor, the protection is designed to preserve value through the token term.

Holders capture the upside according to campaign terms. The structure is designed to preserve upside while limiting downside exposure under the floor.

Collateral is locked in immutable smart contracts from day one and is governed by the terms shown at launch. The project cannot withdraw or modify terms mid-term, and settlement rules are onchain, not based on discretionary trust.

Yes. Preferred tokens are ERC-20-class instruments and are designed to be transferable where secondary liquidity exists.

Preferred tokens reduce downside exposure, but don't remove risk: smart-contract risk, protocol risk, oracle/settlement risk, collateral risk, and price risk remain possible depending on terms.