What Is a Common Duration for a Team’s Token Vesting Schedule?
A common duration for a core team's token vesting schedule is between 2 to 4 years. This timeframe is considered long enough to align the team's incentives with the long-term success of the DAO.
A longer vesting period signals stronger commitment and reduces the likelihood of the team abandoning the project after a short time, which protects the token value.
Glossar
Duration
Sensitivity ⎊ Duration, within cryptocurrency options and financial derivatives, represents the degree to which an instrument’s price changes in response to fluctuations in underlying variables, notably time decay and implied volatility shifts, impacting portfolio valuation and risk exposure.
DAO Governance
Decentralization ⎊ DAO Governance, within cryptocurrency, options trading, and financial derivatives, represents a shift from centralized control to distributed consensus mechanisms for protocol management.
Token Vesting
Condition ⎊ Token Vesting refers to the contractual time-based release mechanism applied to early investor or team token allocations, ensuring that these tokens are unlocked gradually rather than all at once upon launch.
Token Vesting Schedule
Allocation ⎊ The token vesting schedule, prevalent in cryptocurrency projects and increasingly mirrored in options and derivatives compensation structures, dictates the timed release of tokens or assets to participants ⎊ founders, team members, advisors, or investors ⎊ preventing immediate market saturation and incentivizing long-term commitment.