Long-Term Vesting

Crypto terminology for Loopring encompasses key concepts such as zkRollups, DEX, and liquidity pools, essential for understanding its decentralized trading ecosystem.

Long-term vesting refers to a system where tokens or assets are locked for a specified period before the holder can access them. This practice is often used by projects to promote stability and discourage quick selling after a token launch.In long-term vesting, a predefined schedule outlines when and how much of the asset will be released to the holder. For example, a project might lock tokens for a year, releasing a portion monthly thereafter. This approach helps align the interests of team members, investors, and the community, ensuring that those involved have a vested interest in the project’s success over time.By delaying access to tokens, long-term vesting can help reduce volatility in the token’s price. It encourages stakeholders to think about the project’s future rather than seeking immediate profits, fostering a more sustainable growth model. Overall, it plays a crucial role in building trust and commitment among participants in the ecosystem.

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