What is Vesting?

Question

What is Vesting?

Accepted Answer

Vesting in the context of blockchain and cryptocurrency is a mechanism that locks up a portion of tokens allocated to team members, early investors, and advisors, releasing them gradually over a predetermined period to align long-term incentives and prevent immediate token dumps, thereby promoting project stability.

Vesting

What is Vesting?

What is the primary purpose of token vesting in a crypto project's tokenomics?

How do common vesting schedules like 'cliff' and 'linear' function in practice for early investors and team members?

Why is the vesting schedule a critical factor for investors when evaluating a new crypto project or token sale?

What are the key risks and benefits associated with token vesting for both the project and its stakeholders?

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