What Is the Role of Token Lock-up Periods in Preventing Rapid Governance Attacks in Crypto Projects?

Token lock-up periods, or vesting schedules, prevent large token holders from acquiring a dominant voting stake quickly and using it for a hostile takeover. By requiring tokens to be held for a set time before they can be used for voting or selling, it signals long-term commitment.

This mechanism discourages short-term speculative attacks aimed at exploiting governance loopholes. It provides stability and predictability to the governance process.