What Is a Token Vesting Schedule and How Does It Relate to Preventing a Sudden Sell-Off?

A token vesting schedule is a pre-determined plan that releases a team's or early investor's allocated tokens gradually over time, rather than all at once. This prevents a massive, sudden sell-off that could crash the price immediately after launch.

By locking up a significant portion of the supply, vesting schedules align the team's financial interests with the long-term success of the project, mitigating the risk of a developer-led price collapse.