How Does the Concept of ‘Fully Diluted Valuation’ (FDV) Relate to Vesting?

Fully Diluted Valuation (FDV) is the total market capitalization of a crypto project if all its tokens, including those currently unreleased due to vesting or lock-up, were in circulation. It is calculated by multiplying the current token price by the maximum total supply.

Vesting schedules directly impact the FDV because they define the timeline for the release of the remaining tokens. Investors often use FDV to assess a project's long-term valuation potential and compare it against competitors, as it represents the eventual maximum market cap.