How Does a Vesting Schedule Mitigate the Risk of a Rug Pull?

A vesting schedule is a mechanism that locks up tokens allocated to the development team and early investors, releasing them gradually over a predetermined period. This prevents the team from dumping a large supply of tokens onto the market immediately after launch, which would crash the price and constitute a rug pull.

It aligns the team's financial incentives with the project's long-term success.