What are tokens streams?

Token streams are smart contracts that are programmed to unlock tokens periodically over an arbitrary amount of time. They are primarily used for token vesting but can also be used to automate the distribution of salaries and wages.

Types of token streams

There are two types of token streams: Fixed and Transferrable.

Fixed

Unlocked tokens in fixed token streams can only ever be withdrawn by the recipient Algorand address assigned at the creation of the stream. This is the most common type of stream and should be used if you are streaming salaries or wages.

Transferrable

When a Transferrable stream is created, a separate smart contract called a Vault is created alongside the stream smart contract, along with an NFT called the Vault Key. Upon creation, the initial recipient, defined prior to creation, can claim the Vault Key from the Vault smart contract. From then on, any account who is holding the Vault Key can withdraw unlocked tokens from the token stream. This means that eligibility claim future unlocked tokens can be transferred between Algorand accounts.