NUTS Platform Docs
1.0.0
1.0.0
  • Welcome to NUTS Finance!
  • Foreword
  • Background
  • Project Definition
  • Use Cases
    • NUTS Finance - Financial Instruments
    • NUTS Finance - Issuance
    • ACoconut - Loan Contract
    • ACoconut - Lockup Contract
    • ACoconut - PIPE Contract
    • ACoconut - ESOP Contract
  • Non Functional Requirements
  • Architecture Design
    • Domain Model
    • Interaction - Instrument Management
    • Interaction - Issuance Creation
    • Interaction - Issuance Engagement
    • Interaction - Token Transfer
    • Interaction - Timer
  • FAQ
  • Development Plan
  • API Reference
  • Appendix
    • Appendix A: Key Terms
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  • Use Case Description
  • Actors
  • Precondition
  • Process Flow
  • Main Process Flow
  • Alternative Process Flow
  • Issuance States

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  1. Use Cases

ACoconut - ESOP Contract

A financial instrument that incentivizes employees and aligns employees' interests with company share performance.

PreviousACoconut - PIPE ContractNextNon Functional Requirements

Last updated 5 years ago

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Use Case Description

The system will allow sellers to create new Employee Stock Option Plan (ESOP) issuances, and allow buyers to engage existing ESOP issuance.

Actors

  • Seller, who is the asset seller of the ESOP issuance. Usually the Foundation who wants to incentivize employees;

  • Buyer, who is the asset purchaser of the ESOP issuance. Usually the Foundation employee;

  • Timer Oracle, who is an external timer service provider that provides timing information.

Precondition

  • Financial Service Providers have created the ESOP instruments using the NUTS protocol;

Process Flow

Main Process Flow

  • Seller creates new issuance of ESOP instrument;

  • Seller deposits the issued token to the ESOP issuance;

  • Buyers engages the ESOP issuance;

  • Seller vests issued tokens according to the vesting schedule;

  • Buyer can withdraw the issued token that is already vested.

Alternative Process Flow

  • If seller does not deposit the issued token in time, the issuance becomes unfunded;

  • If there is no engagement in time, the issuance completes with no engagement.

Issuance States

Below are the possible states of an ESOP contract:

  • Initiated: The ESOP issuance is created;

  • Engageable: The seller deposits the issued token;

  • Active: The buyer engages the ESOP issuance;

  • Complete Engaged: The vesting schedule completes or the employee service ends;

  • Unfunded: The seller fails to deposit the issued token in time;

  • Complete not Engaged: No buyer engages in time;