Difference between revisions of "Vesting"

Jump to navigation Jump to search

Vesting (view source)

Revision as of 17:11, 3 May 2022

59 bytes added ,  17:11, 3 May 2022
rephrased
m
(rephrased)
Line 1: Line 1:
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.
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 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).
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 usual vesting schedule in a decent project will be 2-4 years with a cliff of 6-12 months and will be implemented using smart contracts.
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 ===
AS42
61

edits

Retrieved from "https://wiki.defillama.com/wiki/Special:MobileDiff/1652"

Navigation menu