Docs/User Entry & Distribution/Unvested Token Reclamation Mechanism v1.0

Unvested Token Reclamation Mechanism v1.0

Last updated: June 2026 | Public Release v1.0

Formal Rules for Unvested Token Recovery

1. Reclamation Principle

Upon verified death of a user, all unvested (unreleased) tokens from their Universal Access Grant are automatically reclaimed and returned to the System Operations Reserve. This mechanism ensures long-term network sustainability and prevents permanent loss of undistributed network resources.

Already released tokens remain the property of the user's estate and are never reclaimed. Only future unreleased tokens are affected.

2. Death Verification Process

2.1 Verification Initiation

Reclamation may be initiated by:

Any member of the user's recovery group

Any verified ANCORA DID holder

Automated inactivity detection after 5+ years of zero account activity

2.2 Verification Requirements

A death attestation is valid only if it meets ALL of the following:

3-of-5 threshold signature from the user's recovery group

Zero-knowledge proof of death documentation (where legally available)

6-month waiting period after initial attestation

No counter-attestation received during waiting period

Validator majority confirmation of attestation validity

2.3 Inactivity-Based Reclamation

Accounts with zero activity for 5 consecutive years are subject to automatic reclamation:

System sends 3 on-chain notification messages over 6 months

No response or activity received during notification period

Reclamation executed automatically after waiting period

User may reactivate account at any time before final reclamation

3. Reclamation Calculation & Execution

3.1 Reclaimable Amount Calculation

Only unreleased, unvested tokens are reclaimed. All previously released tokens are untouched.

3.2 Execution Process

Verification complete and waiting period expired

Smart contract calculates exact reclaimable amount

Unvested grant allocation cancelled permanently

Equivalent amount transferred to System Operations Reserve

Reclamation event recorded permanently on-chain with full transparency

Public notification broadcast to network

3.3 Reclaimed Fund Usage

All reclaimed tokens are added to the System Operations Reserve, extending the 50-year release schedule proportionally. Reclaimed funds may only be used for the authorized purposes defined in the System Operations Reserve Management Policy.

4. Appeal & Reversal Process

Appeal Window: 12 months from reclamation execution date

Appeal Requirements: Valid proof of user identity and liveness, 3-of-5 recovery group signature

Reversal Process: If appeal is approved, grant is reinstated with retroactive release of all missed amounts

Finality: No appeals accepted after 12 month window; reclamation becomes permanent

5. Transparency & Audit

All reclamation events are publicly visible on-chain

Monthly reclamation report published with total amounts and counts

Annual independent audit of all reclamation operations

All verification materials stored immutably for audit purposes

No anonymous or hidden reclamations permitted