What Is the Incentive for Founders to Agree to Long Vesting Periods?
Founders agree to long vesting periods to signal their long-term commitment to the project's success, which builds investor confidence and reduces the perception of a "rug pull" or short-term profit-taking. It aligns their financial incentives with the long-term intrinsic value creation of the protocol.
Long vesting is often a requirement from venture capital investors.
Glossar
Founders
Genesis ⎊ The term "Founders" within cryptocurrency, options trading, and financial derivatives contexts typically denotes the initial architects or core contributors to a protocol, project, or firm.
Long Vesting Periods
Stability ⎊ Long vesting periods are a mechanism where tokens allocated to team members, advisors, or early investors are locked up for an extended duration and released gradually over time.
Incentive
Mechanism ⎊ Incentive structures within cryptocurrency, options trading, and financial derivatives function as engineered protocols to align the interests of diverse participants, influencing behavior and mitigating agency problems.