Vest/Vesting Period

Vesting refers to the process by which tokens or assets become accessible over time, usually as part of a long-term incentive plan for team members, investors, or contributors.

How Vesting Works

During a vesting period, tokens are locked and gradually released based on a predefined schedule. For example, a developer might receive 1,000 tokens, but only 250 become available each year over four years. This approach helps ensure commitment and reduces the risk of large-scale sell-offs that could hurt a project’s market value.

Why Vesting Periods Matter

Vesting creates long-term alignment between a project’s success and its stakeholders. It builds trust with investors by discouraging quick exits and pump-and-dump behavior. For crypto projects, clear vesting schedules are a sign of transparency and responsible tokenomics.