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Difference between revisions of "Vesting"
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Vesting is a mechanism in [[tokenomics]] that delays full distribution of a token or a coin by releasing small amounts of it over a larger period of time. | Vesting is a mechanism of token unlock in [[tokenomics]] that delays full distribution of a token or a coin by releasing small amounts of it over a larger period of time. | ||
Usually projects will implement some kind of vesting for the allocation of tokens of early investors (VCs, early backers, advisors), as well | Usually projects will implement some kind of vesting for the allocation of tokens of early investors (VCs, early backers, advisors), as well for the protocol development team. It incentivises investors and teams to stay focused on making project a success over a longer period of time (in contrast where the team or investors can dump all of their tokens right after the public sale and just walk away). | ||
Most usual vesting schedule in a decent project will be 2-4 years with a cliff of 6-12 months. | Most usual vesting schedule in a decent project will be 2-4 years with a cliff of 6-12 months. | ||