Skip to main content

How Does Vesting of Team Tokens Protect Early ICO Investors?

Vesting refers to the process of locking up the team's allocated tokens and releasing them gradually over a specified period. This mechanism prevents the team from immediately dumping their tokens onto the market, which would crash the price and harm early investors.

It aligns the team's financial incentives with the long-term success of the project. A long vesting schedule demonstrates a commitment to longevity.

What Role Do Vesting Schedules Play in Preventing Immediate Governance Control by Early Investors?
How Does the Concept of ‘Staked Governance’ Affect a Voter’s Incentive Structure?
How Does a Vesting Period for Bonded Tokens Prevent Immediate Price Dumping?
Contrast Linear Vesting with Milestone-Based Vesting for DAO Contributors