Vesting
A schedule that restricts the sale of tokens for a period of time, often applied to team allocations or investor tokens to prevent large sell-offs.
Why It Matters
Vesting is significant because it ensures that individuals who are awarded tokens or stocks earn them gradually over time, protecting a project from sudden sell-off and promoting stability.
Example
For example, a startup might implement a one-year vesting schedule, meaning team members earn their tokens monthly, thus aligning their interests with the long-term success of the project.
Beginner Context
For beginners, understanding vesting can illuminate how compensation structures work in crypto projects, illustrating the balance between rewarding contributors and maintaining project stability.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
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