Vesting Schedule

Definition ∞ A vesting schedule is a predetermined plan for releasing locked cryptocurrency tokens over a set period. This mechanism controls the gradual distribution of tokens to team members, advisors, or early investors, preventing a sudden influx of supply onto the market. Vesting schedules are designed to align the interests of core contributors with the long-term success of the project and to mitigate excessive selling pressure shortly after launch. They promote stability and sustained commitment.
Context ∞ News reports often refer to vesting schedules when discussing the tokenomics of new projects or analyzing potential selling pressure from early investors. Understanding a project’s vesting schedule is crucial for assessing its supply dynamics and potential market volatility. Transparency regarding these schedules is a key factor in investor confidence and project credibility.