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Vesting is a | Vesting is a method of a gradual and/or delayed token distribution. In [[tokenomics]] it describes how much and over what period of time token is being distributed. | ||
Usually projects will implement some kind of vesting for the | Usually projects will implement some kind of vesting for the tokens allocated to early investors (VCs, early backers, advisors), as well for the development team. It incentivises investors and teams to stay focused on making project a success over longer periods of time. In contrast without vesting allocations, teams or investors could just dump all of their tokens right after the public sale and walk away from the project (what was prevalent in [[ICO]] era of 2017). | ||
Most | Most common vesting schedule for a project nowadays is 2-4 years with a cliff of 6-12 months and it is implemented using smart contracts. | ||
=== Cliff === | === Cliff === |
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