Cryptocurrency Q&A
How long does token vesting take?
How long does token vesting take?
Chiara
Sun Jul 21 2024
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6 answers
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As a cryptocurrency investor, I'm always curious about the various mechanisms that underpin token economics. One such mechanism that piques my interest is token vesting. Could you elaborate on how long token vesting typically takes? I understand that it can vary depending on the specifics of a given token's design, but is there a general timeline that investors should be aware of? Do the vesting schedules tend to be short-term, spanning a few months, or longer-term, spanning several years? Additionally, how does the vesting period impact the liquidity and value of a token in the market? Any insights you could provide would be greatly appreciated.
6 answers
HanjiArtistry
Tue Jul 23 2024
Time-based Vesting is a strategic approach that incorporates a predefined timeline for the allocation of tokens to employees.
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Sara
Tue Jul 23 2024
During this time, tokens are gradually vested and released to employees based on predetermined conditions and milestones.
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Eleonora
Tue Jul 23 2024
The timeline typically commences with a one-year cliff, during which no token grants are awarded to employees.
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Eleonora
Tue Jul 23 2024
This period serves as a safeguard to protect the company's digital assets from potential risks posed by short-term employees.
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QuasarGlider
Tue Jul 23 2024
Following the cliff period, the vesting schedule commences, often spanning over a four-year period.
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