How Does a Vesting Schedule Relate to ICO Team Commitment?
A vesting schedule dictates when and how much of the team's allocated tokens are released over a specific period, rather than all at once. This mechanism ensures the team's long-term commitment to the project's success, as their financial reward is tied to future milestones.
A longer vesting period and a lock-up phase demonstrate stronger commitment and reduces the risk of a "rug pull" or quick exit. Investors should scrutinize the schedule for fairness and alignment with the project's roadmap.
It aligns the team's interests with the long-term health of the token's value.