A vesting contract is a mechanism that controls when and how tokens are distributed to individuals or teams. Typically, it is used to ensure that participants, such as developers or investors, receive their tokens gradually over a specified period. This approach helps align their incentives with the long-term success of a project.In a typical vesting contract, there are set time frames, often referred to as “vesting periods.” During this time, only a portion of the total tokens is released. This prevents large amounts of tokens from flooding the market all at once and encourages holders to stay committed to the project.If a participant leaves the project before the vesting period is complete, they usually forfeit the remaining tokens. This structure promotes stability and encourages team members to contribute consistently, enhancing trust among stakeholders. Overall, vesting contracts serve as a tool to manage token distribution effectively, ensuring that all parties remain invested in the project’s future.