Overview
Token vesting is releasing tokens to recipients gradually over time to align long-term incentives. It prevents dumping and rewards commitment. Vesting schedules are common for teams, investors, and airdrops.
How It Works
Tokens are locked and released in portions over a schedule, such as monthly over four years. Cliff periods delay the first release. Vesting reduces immediate sell pressure.
Why It Matters
Vesting aligns incentives and protects token price and governance. It is a standard part of token launch design. Understanding schedules is key to evaluating token projects.
Related Concepts
Vesting relates to Tokenomics, Airdrops, and Token launches. It manages Token Supply release.