Gradual Vesting

Unlock the essentials of crypto terminology for Graph with straightforward definitions, making complex concepts easily digestible for everyone.

Gradual vesting refers to the process of releasing ownership or access to tokens or assets over a specific period. Instead of giving full access at once, the allocation is unlocked in stages.This approach is often used in token distribution for projects to encourage long-term commitment from investors and team members. For instance, a project may schedule a 4-year vesting period, where tokens are released monthly or quarterly. This ensures that stakeholders remain incentivized to contribute to the project’s success over time.Gradual vesting can help reduce market volatility associated with large sell-offs. When holders know they can’t access all their tokens immediately, it tends to create a more stable environment, allowing projects to grow and mature without the risk of sudden price drops due to mass selling.In sum, gradual vesting aligns interests, promotes loyalty, and fosters a healthier ecosystem for both projects and their supporters.

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