# What Is the Concept of Vesting Schedules in Both ICOs and IPOs? ▴ Learn

**Published:** 2025-11-16
**Categories:** Learn

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## What Is the Concept of Vesting Schedules in Both ICOs and IPOs?

A vesting schedule is a mechanism that dictates when and how certain stakeholders (founders, team members, early investors) receive their tokens or shares. It prevents a sudden, large-scale sale that could destabilize the market price.

In ICOs, it locks up team tokens; in IPOs, it restricts the sale of shares held by insiders, ensuring commitment to the project's long-term success.

How Does a Vesting Cliff Differ from a Linear Vesting Schedule?

How Does the Concept of ‘Lock-up’ Differ from a Vesting Schedule?

How Does Token Vesting Schedules Affect Initial Governance Control?

What Is the Concept of a ‘Pre-Commitment’ and How Does It Differ from the ‘Commitment’ Step?

## Discover More

- 
### [Can Established Companies Conduct ICOs?](https://crypto.greeks.live/learn/can-established-companies-conduct-icos/)
![The abstract visual presents a stark, black background cleaved by two intersecting planes exhibiting cyanotic gradients suggestive of intersecting market forces or risk exposure curves. A central, glowing series of concentric teal and blue digital rings simulates a quantum entanglement measurement or a complex algorithmic trading parameter display, hinting at non-linear price action. This formation embodies the complex topology of delta hedging in high-frequency crypto derivatives where implied volatility parameters are crucial inputs for pricing exotic options like strangles on perpetual futures. The symmetrical division suggests equilibrium under stress, mirroring the execution dynamics of automated market maker pool liquidity provision amidst significant asset price discovery events impacting governance tokens. The design evokes concepts of embedded option valuation within DAO treasury management structures and the algorithmic execution required for efficient capital allocation across diverse asset classes.](https://crypto.greeks.live/wp-content/uploads/2025/10/Abstract-Depiction-of-Decentralized-Autonomous-Organization-Governance-Token-Volatility-Through-Quantum-Entanglement-Visualization.jpg)

Established companies can conduct ICOs, known as reverse ICOs, to fund blockchain projects.

- 
### [What Is the Concept of the ‘National Best Bid and Offer’ (NBBO)?](https://crypto.greeks.live/learn/what-is-the-concept-of-the-national-best-bid-and-offer-nbbo/)
![The highly polished metallic substrate secured by visible fasteners centers this composition, suggestive of a secure cryptographic settlement layer or a high-frequency trading engine's core component. Two intersecting planes of varying translucency, one dark matte and the other subtly luminous blue-gray, partition the visual field, symbolizing bifurcated market states or leveraged derivatives exposure across dark pool liquidity venues. This abstract visual dichotomy mirrors the intrinsic risk management required in decentralized finance governance structures managing complex synthetic asset mechanisms like perpetual swaps or path-dependent exotic options. The central black knob suggests a critical control point or a cryptographic key management interface, vital for maintaining atomic settlement finality in volatile digital asset ecosystems where slippage and counterparty risk are primary concerns for sophisticated market makers dealing with basis trading strategies.](https://crypto.greeks.live/wp-content/uploads/2025/10/Specular-Reflection-Analysis-of-Cryptocurrency-Options-Exchange-Centralized-Settlement-Hub-Interface-Mechanism.jpg)

NBBO is the best available bid and offer price across all exchanges, serving as a benchmark for execution quality.

- 
### [What Is the Concept of ‘Tick Size’ and How Does It Interact with Latency in Options Pricing?](https://crypto.greeks.live/learn/what-is-the-concept-of-tick-size-and-how-does-it-interact-with-latency-in-options-pricing/)
![The composition displays a perfectly balanced fulcrum supporting a translucent sphere reflecting a steep terrain under a blue sky, balanced atop a smaller transparent sphere. This abstract representation signifies the delicate equilibrium required in sophisticated financial instruments like perpetual futures and vanilla options contracts. The upper sphere encapsulates the inherent volatility risk within a primary layer one asset often subject to deep in the money or out of the money scenarios. The lower sphere suggests the counterparty risk or underlying collateralization required for delta hedging strategies across decentralized exchanges DEXs. Successfully navigating this structure demands precision similar to executing perfect gamma scalping or managing vega exposure in digital asset derivatives markets where slippage minimizes yield generation.](https://crypto.greeks.live/wp-content/uploads/2025/10/Visualizing-Arbitrage-Equilibrium-Between-Layer-One-Blockchain-Volatility-And-Exotic-Option-Hedging-Strategies.jpg)

Tick size is the minimum price increment; a smaller tick size combined with low latency allows for rapid price adjustments and higher fill rates.

- 
### [What Role Does ‘Leverage’ Play in Both Futures and Options Trading?](https://crypto.greeks.live/learn/what-role-does-leverage-play-in-both-futures-and-options-trading/)
![Two elongated, tapering forms, one pale beige and one cyan-tinted translucent plane, intersect over a segmented, dark metallic structure suggesting underlying infrastructure or hardware. This visual dynamic represents the critical moment of derivative pricing discovery where implied volatility surfaces meet realized price action in decentralized finance. The intersection symbolizes the precise execution point of complex financial contracts like perpetual swaps or cash-settled futures contracts managed by smart contract logic. It mirrors the delicate equilibrium between bid-ask spreads and deep liquidity pool depth essential for successful arbitrage strategies across various centralized and decentralized exchanges DEXs. The underlying structure evokes hardware security modules HSMs or cold storage ledger integrity safeguarding digital asset custody during high-frequency trading HFT maneuvers. Understanding this nexus is key to mastering gamma scalping and managing systematic risk exposure in leveraged crypto options.](https://crypto.greeks.live/wp-content/uploads/2025/10/Crossover-Point-Intersection-of-Volatility-Skew-and-Algorithmic-Trading-Execution-on-Decoupled-Digital-Asset-Ledger.jpg)

Leverage in futures comes from margin; in options, it is inherent in the small premium controlling a large asset value.

- 
### [How Does Leverage Amplify Both Gains and Losses for a Hedge Fund Selling CDS?](https://crypto.greeks.live/learn/how-does-leverage-amplify-both-gains-and-losses-for-a-hedge-fund-selling-cds/)
![This composite structure visually models the layered architecture of decentralized finance infrastructure, perhaps representing disparate blockchain consensus mechanisms or complex derivative protocols. The distinct planar surfaces ▴ one dark segmented with yellow/blue banding, another a muted grey airfoil cross section revealing internal structural voids, and a final light teal base ▴ symbolize segregated liquidity pools or varying collateral tiers in structured products. The precise engineering, evidenced by the drilled apertures in the core element, suggests robust security and minimized systemic risk analogous to overcollateralized tokenized assets or sophisticated yield farming vaults. This juxtaposition reflects the non-fungible complexity inherent in smart contract execution underpinning synthetic asset issuance and perpetual futures trading mechanisms.](https://crypto.greeks.live/wp-content/uploads/2025/10/Deconstructed-Aerodynamic-Surface-Visualization-of-Digital-Asset-Settlement-Layer-Structure.jpg)

Leverage magnifies returns on premiums but also magnifies losses, potentially causing a total wipeout if a default occurs.

- 
### [How Do Vesting Schedules Affect Governance Token Supply and Stability?](https://crypto.greeks.live/learn/how-do-vesting-schedules-affect-governance-token-supply-and-stability/)
![A high contrast studio capture displays a beige, glossy semi-sphere hinged against a translucent cyan sphere bisected by a hairline fracture, resting atop a matte, darker blue substrate. This composition symbolizes the opaque nature of vesting schedules or locked liquidity pools common in DeFi yield farming strategies. The exposed hinge mechanism suggests a complex smart contract execution, perhaps representing the unlocking of a governance token or the realization of embedded options payoff structures. The blue sphere embodies underlying asset price discovery amidst market microstructure noise. Concepts like collateralized debt positions and contingent claim settlement are evoked by the revealed separation. The visual tension mirrors high-frequency trading stress testing option Greeks sensitivity across derivative exposure.](https://crypto.greeks.live/wp-content/uploads/2025/10/Decentralized-Finance-Protocol-Governance-Token-Unlocking-Mechanism-Revealing-Underlying-Asset-Volatility-Surface.jpg)

Vesting schedules release tokens over time to prevent sudden sell-offs and immediate centralization, promoting price stability and responsible governance.

- 
### [What Is the Concept of “Mining Centralization” and How Does It Increase 51% Attack Risk?](https://crypto.greeks.live/learn/what-is-the-concept-of-mining-centralization-and-how-does-it-increase-51-attack-risk/)
![The visual depicts a highly detailed mechanism resembling an aircraft structure, possibly a leading edge slat or wing control surface attachment point, rendered against a stark black void, suggesting isolation or deep space simulation pertinent to blockchain infrastructure performance metrics. Cream and metallic surfaces feature precision markings such as G301 and numerical indices indicating calibration points or serial traceability essential for verifying smart contract state transitions in decentralized finance DeFi protocols. This intricate electromechanical assembly symbolizes the delicate precision required in algorithmic execution of volatility surface calibration underpinning complex structured products like exotic options tied to Bitcoin perpetual futures markets or layer two scaling solutions settlement latency modeling. The streamlined, almost biomimetic housing encapsulates a central aperture suggesting a fan or turbine, representing underlying computational throughput or throughput capacity critical for low-latency price discovery mechanisms in decentralized exchanges DEX order book management and sophisticated automated market maker AMM liquidity provision scaling. The metallic leading edges imply sharp, high-frequency trading signals utilized in delta hedging portfolios reliant on accurate oracle feeds for collateral valuation against decentralized perpetual swap agreements.](https://crypto.greeks.live/wp-content/uploads/2025/10/Complex-High-Fidelity-Simulation-of-Tokenized-Asset-Winglet-Actuator-Dynamics-For-Option-Hedging-Strategies.jpg)

Control of the majority hash rate by a few pools, simplifying coordination for a collusive 51% attack.

- 
### [How Are ‘Time-Locks’ Used in Vesting Schedules for Token Distribution?](https://crypto.greeks.live/learn/how-are-time-locks-used-in-vesting-schedules-for-token-distribution/)
![This high-contrast presentation of polished automotive contours, featuring deep indigo and creamy white partitioning, visually models the architecture of an Automated Market Maker pool interface. The central chromed element suggests a locking mechanism or a pivotal execution point, emblematic of immutable smart contract execution within DeFi protocols. The sleek, upward trajectory mirrors the momentum of leveraged long positions or perpetual contract settlement curves. Keywords include Impermanent Loss mitigation bonding curves slippage tolerance AMM tokenomics delta hedging volatility surface and on-chain settlement finality. This aesthetic embodies the precise engineering required for secure cross-chain atomic swaps in nascent derivative ecosystems.](https://crypto.greeks.live/wp-content/uploads/2025/10/Streamlined-Aerodynamic-Finial-Detailing-Reflecting-Liquidity-Pool-Efficiency-in-Decentralized-Finance.jpg)

Time-locks release tokens to recipients only after a set time or milestone, preventing sudden market sell-offs.

- 
### [Explain the Concept of ‘Backwardation’ in Traditional Futures and Its Equivalent in Perpetual Swaps](https://crypto.greeks.live/learn/explain-the-concept-of-backwardation-in-traditional-futures-and-its-equivalent-in-perpetual-swaps/)
![This abstract representation features a spherically contoured device, segmented with beige and deep slate components, set against absolute black void suggesting an opaque trading environment. The luminous cyan accent line embedded beneath the convex dome visually signifies high-frequency data transmission or blockchain consensus layers. This structure conceptually embodies a calibrated instrument for quantifying cryptocurrency perpetual futures contract risk parameters. Specifically, it mirrors the intricate calibration required for accurately modeling implied volatility skew across various strike prices in decentralized finance options protocols. The reflective base implies transparent settlement mechanisms inherent in decentralized exchange execution against counterparty risk inherent in complex derivative structuring like synthetic asset collateralization strategies. Key elements suggest theta decay monitoring and gamma exposure management crucial for sophisticated market makers navigating decentralized autonomous organization governance votes affecting token utility.](https://crypto.greeks.live/wp-content/uploads/2025/10/Precision-Instrument-Mimicking-Digital-Asset-Volatility-Surface-Mapping-for-Option-Pricing-Models.jpg)

Backwardation (futures price < spot price) is equivalent to a negative funding rate (swap price < spot price) in perpetual swaps.

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