Zero Vesting Period

Definition ∞ Zero vesting period refers to an immediate and unrestricted release of tokens or equity, meaning there is no waiting period before the recipient gains full ownership and control. In cryptocurrency projects, this implies that tokens allocated to team members, advisors, or early investors are instantly liquid and tradable upon distribution. This contrasts with vesting schedules that gradually release assets over time. It grants immediate access to the distributed assets.
Context ∞ Zero vesting periods are often a point of discussion in crypto news, particularly concerning token economics and potential market impacts. While it can incentivize immediate participation, critics argue it might lead to rapid selling pressure from early participants, affecting token price stability. Projects typically choose vesting schedules to align long-term incentives and mitigate sudden market shocks, making zero vesting a notable exception that warrants careful market analysis.