Vesting schedules define the timeline and conditions under which tokens or digital assets are released to recipients, such as team members, advisors, or early investors. These schedules typically involve a cliff period, during which no tokens are released, followed by a linear release over several months or years. Their purpose is to align incentives, prevent large token dumps, and promote long-term commitment to a project. They are a common feature in token distribution models.
Context
News often reports on vesting schedules when analyzing the tokenomics of new digital asset projects or assessing the potential for market supply shocks. The details of these schedules can significantly impact a token’s price stability and investor confidence. A key debate involves striking the right balance between rewarding early contributors and ensuring sufficient circulating supply for market liquidity. Future developments might include more dynamic or performance-based vesting mechanisms.
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