How Does a Long Vesting Period Affect a Token’s Volatility?
A long vesting period generally reduces a token's short-term volatility by limiting the circulating supply and restricting the ability of early, large holders to dump tokens. However, the token can experience concentrated spikes in volatility around the dates when large tranches of tokens are released (vesting events), as the market anticipates potential selling pressure.
Glossar
Circulating Supply
Token ⎊ The circulating supply within cryptocurrency contexts represents the number of tokens currently available and actively traded on exchanges or held by investors, excluding those locked in smart contracts, staking agreements, or otherwise inaccessible.
Vesting Period
Schedule ⎊ Vesting periods represent a predetermined timeframe during which rights to an asset, typically equity or tokens, are progressively unlocked for the recipient.