phaver

Token Vesting

Investing in tokens can be a high-stakes game, but token vesting offers a way to play it smart. By gradually releasing tokens over a set period, this method aligns incentives, promoting responsible token usage and contributing to market stability.

Think of token vesting like a trust fund — it doesn’t hand out everything at once but distributes funds incrementally. This approach ensures that tokens are used to fuel a project's growth rather than being dumped on the market for instant gains.

For example, if a project's founders have their tokens vested over three years, with 33% released each year, they are motivated to focus on long-term success instead of cashing out right away. This structure not only helps the project achieve its goals but also enhances the likelihood of the tokens appreciating in value over time.

Token vesting is essential for both investors and projects, fostering a more thoughtful and sustainable approach. By locking in value and encouraging responsible growth, t…