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What does vesting mean in the context of cryptocurrency?

avatarBundgaard NicolaisenNov 29, 2021 · 3 years ago1 answers

Can you explain the concept of vesting in the context of cryptocurrency? What does it mean and how does it work?

What does vesting mean in the context of cryptocurrency?
Cryptocurrency
Vesting
Digital Assets

1 answers

  • avatarNov 29, 2021 · 3 years ago
    In the world of cryptocurrency, vesting is a mechanism used to control the release of tokens to investors or team members. It helps to prevent market manipulation and ensures that tokens are distributed in a fair and controlled manner. Vesting typically involves locking up a certain percentage of tokens for a specified period of time. During this period, the tokens cannot be transferred or sold. As time goes on, the locked tokens are gradually released to the holder, allowing them to gain full ownership. This mechanism is designed to encourage long-term commitment and discourage short-term speculation. By implementing vesting, cryptocurrency projects aim to create a more stable and sustainable ecosystem.

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