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How Does a Vesting Schedule Mitigate the Risk of Early Token Dumping by Founders?

A vesting schedule releases a founder's or team member's tokens gradually over a set period, rather than all at once. This mechanism aligns the team's financial incentives with the long-term success of the project.

It prevents founders from immediately selling large amounts of tokens, which would crash the price and harm public investors.

What Is the Difference between Time-Based and Milestone-Based Vesting?
How Does a Vesting Cliff Differ from a Linear Vesting Schedule?
How Do Token Vesting Schedules Aim to Prevent Rug Pulls?
How Can a Company Use Token ‘Vesting Schedules’ to Align Long-Term User Incentives?