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
Related Terms
Genesis Block
The very first block in a blockchain, also known as Block 0. Bitcoin's genesis block was mined on January 3, 2009.
Buy the Dip
A strategy (and popular crypto phrase) of purchasing an asset after its price has dropped, on the belief that the decline is temporary and the price will recover. Buying the dip works in uptrends but can be costly in sustained bear markets.
Paper Trading
Simulated trading using virtual money to practice strategies without risking real funds. Paper trading is a useful way for beginners to learn how markets work and test trading ideas before committing actual capital.
HODL
A term originating from a misspelling of "hold," meaning to hold onto cryptocurrency long-term rather than selling. It has become a popular investment philosophy in the crypto community.
FOMO
Fear Of Missing Out. The anxiety that an exciting opportunity is being missed, often leading to impulsive investment decisions based on hype rather than analysis.