How Do Vesting Schedules Affect the Circulating Supply and Short-Term Price?

Vesting schedules legally restrict the sale of tokens held by founders, team members, and early investors for a defined period. This prevents a sudden flood of tokens onto the market, which would depress the short-term price.

As tokens vest, they are released into the circulating supply, creating potential selling pressure that must be absorbed by market demand. Well-designed vesting schedules promote long-term commitment.