What Is the Difference between Time-Based and Milestone-Based Vesting?

Time-based vesting releases tokens simply based on the passage of time, such as a fixed percentage released monthly over four years. Milestone-based vesting, conversely, releases tokens only upon the achievement of specific, predefined project goals or milestones, such as launching a mainnet or reaching a certain user count.

Time-based is simpler and more common, while milestone-based vesting directly aligns the team's incentives with the delivery of key strategic objectives, making it performance-driven.