How Do Smart Contracts Enforce Vesting Schedules?
Smart contracts are self-executing agreements with the terms of the vesting schedule directly written into code on the blockchain. The contract holds the team's tokens and is programmed to release them automatically according to the pre-defined schedule, such as monthly or quarterly.
This eliminates the need for a trusted third party.
Glossar
Blockchain Immutability
Provenance ⎊ Blockchain immutability, within cryptocurrency and derivative markets, establishes a tamper-evident record of transaction history, fundamentally altering information asymmetry.
Smart Contracts
Function ⎊ Smart contracts are self-executing agreements with the terms of the agreement directly written into lines of code, residing on a decentralized ledger.
Vesting Smart Contract
Mechanism ⎊ A vesting smart contract functions as a temporally-controlled release of digital assets, typically tokens, governed by predefined conditions encoded on a blockchain.