Unvested token distribution refers to the allocation of cryptocurrency tokens that are subject to future release conditions rather than immediate availability. These tokens are typically granted to project teams, advisors, or early investors but remain locked for a specified period or until certain milestones are met. Vesting schedules are designed to align incentives, prevent large-scale dumping immediately after a launch, and promote long-term commitment to the project. This mechanism helps manage token supply and mitigate potential downward price pressure.
Context
Unvested token distribution is a common practice in cryptocurrency projects, often scrutinized by the community and potential investors for its impact on market dynamics. Discussions center on the fairness and transparency of vesting schedules, particularly concerning the timing and quantity of token releases. A critical debate involves balancing the need to compensate early contributors with protecting retail investors from sudden supply shocks. Future developments aim for more dynamic and community-aligned vesting models that adapt to project progress and market conditions.
The Meteora token launch, releasing 48% unvested supply, stress-tests the fair launch model, revealing critical friction between distribution and price stability in Solana DeFi.
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