Instead of receiving everything immediately, vesting spreads ownership over time or links it to specific achievements.

Vesting helps ensure fairness, long-term commitment, and alignment between the company and the people contributing to it.

There are three main vesting types in Unlisted:

Below, you’ll find simple explanations of each type, with short clarifications of key technical terms.

Time-based vesting means shares or options vest gradually over a defined period, such as 3 or 4 years.

Here, vesting is linked to how long the person stays with the company.

You might also see a cliff, which is the initial period (often 6–12 months) before any vesting happens. Once the cliff is reached, the first portion of the shares or options vests immediately.

Time-based vesting can be:

With linear vesting, shares or options vest at a constant rate over the entire vesting period.

Example:

Linear means the vesting amount stays the same at each interval.

Useful when: you want a simple, predictable structure for employees that is quick to set up.

Here, vesting happens in uneven amounts.

For example, you can decide that more shares vest later in the period, or that a larger portion vests at the beginning.

Non-linear vesting provides flexibility to align with the expected value and contribution of the person.

Useful when: you want custom vesting that reflects changing responsibilities or seniority.

Milestone-based vesting links vesting to the completion of specific goals or deliverables rather than time.

A “milestone” is a concrete accomplishment, such as:

The person must complete the milestone for the equity to vest; time alone does not unlock anything.

Useful when: you want to reward concrete achievements or project-based contributions.

Be aware that milestones can quickly become outdated or irrelevant in early-stage companies, so take extra care when setting them.

Combined vesting mixes both systems:

Some equity vests gradually over time, while another part vests upon reaching milestones.

Example:

This method gives you both the structure of time-based vesting and the performance focus of milestone vesting.

Useful when: you want to encourage both long-term engagement and key achievements.

In Unlisted, you can set up three vesting systems:

Each method supports different goals, whether you want to reward long-term loyalty, recognize key achievements, or blend both approaches.

We recommend using the same structure for multiple employees to make it fair and easier to manage.