Vesting

Vesting Cliff refers to a specific period in which no equity is earned before the vesting schedule begins, ensuring commitment from stakeholders.

Vesting refers to a process that dictates when and how tokens or cryptocurrencies become fully owned by a user or an entity. Typically, this mechanism is used to ensure that team members, advisors, or investors do not sell their tokens immediately after a project launches, which helps maintain market stability and trust.In many cases, vesting schedules are set up to release tokens gradually over a specified period. For example, a project might implement a four-year vesting schedule with a one-year cliff. This means that no tokens are released for the first year, and after that, tokens will be distributed monthly or quarterly until the total amount is vested.Vesting helps align the interests of all parties involved. It encourages long-term commitment and discourages quick profits at the expense of the project’s future. By locking tokens for a period, it creates a sense of security for the project and its community, promoting steady growth and development over time.

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