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Vesting

Crypto vesting is the practice of locking tokens or coins for a set period before they can be accessed or traded by the holder. Commonly used in ICOs, token sales, and fundraising events, vesting ensures long-term commitment from team members, advisors, and early investors, preventing quick sell-offs for profit.

Key Aspects of Crypto Vesting:

● Purpose: It aligns the interests of stakeholders with the project's long-term success, keeping key players invested in its growth.

● Vesting Schedule: Typically includes a "cliff" (an initial waiting period before tokens are released) followed by periodic token releases. For example, a one-year cliff with monthly token unlocks thereafter.

Types of Vesting include Time-Based Vesting, Milestone-Based Vesting, Hybrid Vesting and Reverse Vesting. In summary, vesting helps foster long-term commitment to a project by releasing tokens in a controlled manner, ensuring that all stakeholders remain focused on the project's success.