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What is the recommended vesting schedule for ICO tokens in the cryptocurrency industry?

avatarSciFi247Nov 25, 2021 · 3 years ago3 answers

In the cryptocurrency industry, what is the suggested vesting schedule for ICO tokens? How long should ICO tokens be locked up before they can be fully accessed and traded?

What is the recommended vesting schedule for ICO tokens in the cryptocurrency industry?

3 answers

  • avatarNov 25, 2021 · 3 years ago
    The recommended vesting schedule for ICO tokens in the cryptocurrency industry varies depending on the project and its specific needs. However, a common practice is to have a vesting period of 6 to 12 months. This means that ICO tokens are gradually released to investors over a certain period of time, usually in monthly or quarterly installments. The purpose of a vesting schedule is to prevent early investors from dumping their tokens immediately after the ICO, which can lead to price volatility and instability in the market. By gradually releasing tokens, it allows for a more controlled and stable distribution of tokens, giving the project time to develop and grow.
  • avatarNov 25, 2021 · 3 years ago
    When it comes to the recommended vesting schedule for ICO tokens in the cryptocurrency industry, there is no one-size-fits-all answer. Different projects have different needs and goals, so the vesting schedule can vary. However, it is generally advised to have a longer vesting period to ensure that early investors are committed to the project for a significant amount of time. This can range from 12 to 36 months, with tokens being released in regular intervals. By having a longer vesting period, it encourages investors to hold onto their tokens and aligns their interests with the long-term success of the project.
  • avatarNov 25, 2021 · 3 years ago
    According to BYDFi, a leading cryptocurrency exchange, the recommended vesting schedule for ICO tokens is typically around 12 months. This means that ICO tokens are locked up for a year before they can be fully accessed and traded. This vesting period allows for a more controlled distribution of tokens and helps to prevent price manipulation and market volatility. By gradually releasing tokens over a longer period of time, it gives investors an incentive to hold onto their tokens and support the project's long-term growth. However, it's important to note that the specific vesting schedule can vary depending on the project and its unique circumstances.