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vesting
What does vesting mean?
A schedule that locks tokens allocated to teams or investors and releases them over time, discouraging immediate dumps. Often includes a cliff before releases begin.
"The team's tokens are on a four-year vesting schedule, which is reassuring."
Origin
Borrowed from equity compensation; standard in crypto token allocations.
Frequently asked questions
What does vesting mean in crypto?
It is a schedule that locks tokens allocated to a team or investors and releases them gradually over time instead of all at once.
Why is vesting good for investors?
It discourages insiders from dumping their entire allocation immediately, spreading out potential sell pressure and signalling longer-term commitment.
What is the difference between vesting and a cliff?
A cliff is an initial period where nothing unlocks; vesting is the ongoing gradual release that typically continues after the cliff ends.
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