What Role Do Vesting Schedules Play in Preventing Immediate Governance Control by Early Investors?

Vesting schedules legally lock up tokens held by founders, team members, and early investors for a set period, releasing them gradually over time. This mechanism prevents these large initial holders from dumping their tokens on the market or immediately exercising overwhelming voting power.

By staggering the release, vesting encourages long-term commitment to the project's success and governance. It ensures that the initial control is diluted over time as the token distribution widens to the community.