What is the role of vesting in the world of cryptocurrency?

1 answers

• Mar 06, 2022 · 3 years ago
  Vesting is a term you'll often come across in the cryptocurrency world. It refers to the process of gradually releasing tokens to token holders over a certain period of time. This is done to prevent token holders from flooding the market with their tokens and causing price volatility. Vesting is important for both token holders and project teams. For token holders, it ensures that they have a long-term commitment to the project and are incentivized to hold onto their tokens. For project teams, it provides them with a sense of security, knowing that token holders can't dump their tokens all at once. So, in a way, vesting acts as a safety net for both parties, promoting stability and trust in the cryptocurrency ecosystem.
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