Rolling Lockup

Rollup smart contracts refer to Layer 2 scaling solutions that bundle multiple transactions into a single one, enhancing blockchain efficiency and reducing costs.

A rolling lockup refers to a strategic approach used by projects to manage the release of tokens to their stakeholders over time. Instead of releasing all tokens at once, projects stagger the availability of tokens in phases. This approach typically involves setting specific time windows during which only a portion of the total allocated tokens can be sold or traded. For instance, after an initial lockup period, a fixed percentage might be released monthly or quarterly, gradually allowing participants to access their assets.The purpose of a rolling lockup is to prevent sudden market floods that can lead to price volatility. By controlling the release, projects aim to maintain more stable token prices and encourage long-term holding among investors. Additionally, it helps in building trust within the community by signaling that the project is committed to its long-term vision.In summary, rolling lockups are a tool for managing token supply and fostering a balanced market environment, benefiting both the project and its stakeholders.

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