What are some common strategies for implementing crypto vesting in the cryptocurrency industry?

3 answers

• Dec 26, 2021 · 3 years ago
  One common strategy for implementing crypto vesting is to use a smart contract. Smart contracts are self-executing contracts with the terms of the agreement directly written into code. By using a smart contract, you can automate the vesting process and ensure that tokens are released to the recipient according to the predetermined schedule. This provides transparency and eliminates the need for a third party to oversee the vesting process.
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• Dec 26, 2021 · 3 years ago
  Another strategy is to use a lock-up period. During the lock-up period, the tokens are held in a secure wallet and cannot be transferred or sold. This ensures that the recipient cannot immediately dump the tokens on the market, which could negatively impact the token price. The lock-up period can be set to a specific duration, such as 6 months or 1 year, to give the project time to develop and gain traction before the tokens are released.
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• Dec 26, 2021 · 3 years ago
  At BYDFi, we recommend using a combination of vesting strategies to ensure a fair distribution of tokens. This may include a mix of time-based vesting, milestone-based vesting, and lock-up periods. By implementing multiple vesting strategies, you can incentivize long-term token holding and align the interests of token holders with the success of the project. It's important to carefully consider the vesting schedule and terms to strike a balance between rewarding early contributors and maintaining token liquidity.
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