How Does Token Vesting Conceptually Mirror the ‘Intrinsic Value’ of an Option?
Token vesting conceptually mirrors the intrinsic value of an option once the token is unlocked. The intrinsic value of a call option is the difference between the current stock price and the strike price.
Similarly, an unlocked token (post-vesting) has an intrinsic value equal to its current market price, which the holder can immediately realize, much like exercising an in-the-money option.
Glossar
Intrinsic Value
Valuation ⎊ This represents the in-the-money amount of an option, calculated as the difference between the spot price and the strike price, if positive, otherwise zero.
Intrinsic Value of a Call Option
Definition ⎊ The Intrinsic Value of a Call Option represents the immediate, positive economic benefit a holder would realize if they chose to exercise the contract at the current moment.
Token Vesting
Schedule ⎊ Token vesting, within cryptocurrency and derivative markets, represents a predetermined release of assets ⎊ typically tokens ⎊ over a defined period, aligning incentives between project teams, investors, and stakeholders.
Intrinsic Value of an Option
Valuation ⎊ Intrinsic value of an option, within cryptocurrency derivatives, represents the immediate profit obtainable through exercising the option given the underlying asset’s current market price.