How Does a Vesting Schedule Impact the Long-Term Stability of a Cryptocurrency Project?

A vesting schedule locks up tokens allocated to the team, advisors, and early investors for a set period, releasing them gradually. This mechanism promotes long-term commitment from key stakeholders by preventing an immediate sell-off.

It reduces market volatility and signals confidence in the project's future, thereby contributing significantly to its stability. It aligns the interests of insiders with the broader community.