Vesting
A scheduled release of tokens over time, often used to limit when founders, employees, investors, or community members can sell or transfer them.
Vesting is a token release schedule that determines when someone who has been allocated tokens can actually access, transfer, or sell them. Instead of receiving all tokens at once, recipients unlock them gradually over a set period. This is common for team members, early investors, advisors, ecosystem grants, and sometimes users who earn rewards. A vesting plan may include a cliff, meaning no tokens unlock until a certain date, followed by monthly, quarterly, or other scheduled releases.
Vesting matters because it can reduce sudden selling pressure and better align participants with a project’s long-term development. For example, if a founder receives 10 million tokens with a one-year cliff and four-year vesting, they may get no tokens for the first year, then unlock portions over the next three years. This is similar to employee stock vesting in startups: it encourages continued involvement rather than rewarding someone fully on day one. Investors often review vesting schedules to understand future token supply and potential market impact.
Other terms in Tokenomics & Launches
Airdrop
A token distribution method where a project sends free tokens to users, often to reward early activity or broaden ownership.
Cliff (Vesting)
A cliff is the initial waiting period in a vesting schedule before any allocated tokens can be unlocked or claimed.
Emission Schedule
A plan that defines how and when new tokens are created, released, or unlocked into circulation.
Fair Launch
A token launch model that aims to give the public equal initial access, with no special early allocations for insiders or private investors.