Can you explain the concept of vesting in relation to cryptocurrency?

1 answers

• Dec 26, 2021 · 3 years ago
  Vesting is a mechanism commonly used in the cryptocurrency industry to distribute tokens over time. It involves locking up a certain amount of tokens and releasing them gradually according to a predetermined schedule. This is done to prevent token holders from immediately selling their tokens and causing price volatility. Vesting is often used to incentivize early investors, team members, and advisors to stay committed to the project for a longer period. It helps to align the interests of the stakeholders with the success of the project and promotes stability in the market. Vesting is an important concept in cryptocurrency as it ensures a more controlled distribution of tokens and encourages long-term value creation.
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