How Does the Concept of ‘Vesting’ Relate to Token Supply and Potential Future ‘Burns’?
Vesting schedules restrict the sale of newly issued tokens for a period, preventing immediate supply shock. When vested tokens are released, they increase the circulating supply.
A future token burn could be used to counteract this inflationary pressure from vesting, maintaining a balance between rewarding early participants and controlling market supply.
Glossar
Inflationary Pressure
Momentum ⎊ Within cryptocurrency markets and derivative instruments, inflationary pressure manifests as a sustained upward trend in asset prices, often fueled by heightened demand exceeding available supply.
Token Burn
Process ⎊ A Token Burn is the intentional, cryptographic destruction of a quantity of digital assets, executed by sending them to a publicly verifiable, non-recoverable address on the blockchain.
Token Supply
Circulation ⎊ The token supply, within the context of cryptocurrency and derivatives, fundamentally represents the total number of tokens existing or potentially available across all networks and exchanges.