What Is the Purpose of a ‘Reverse Vesting’ Clause?

A reverse vesting clause is a mechanism, typically used for founders or core team members, where the project or company retains the right to buy back the individual's tokens (or shares) at the original purchase price if they leave the project before the vesting period is complete. The purpose is to ensure that early contributors remain committed and to protect the project's ownership structure.

It functions similarly to a standard vesting schedule but gives the project the right of repurchase.