Definition
Vesting controls access to an allocation rather than necessarily creating new tokens. Projects often use it for team members, investors or contributors to spread availability across a period. A schedule can include an initial waiting period, gradual releases or milestone-based conditions.
How It Works
A vesting contract or administrative arrangement tracks the amount that has become claimable. A cliff can delay the first release, after which tokens may unlock linearly or in discrete installments. Whether unclaimed tokens remain locked, can be transferred as a claim or can be revoked depends on the implementation.
Key Considerations
Vesting is different from a lockup with one release date, although projects may combine both. It can limit immediate selling but does not ensure long-term commitment or prevent all economic exposure from being transferred through other arrangements. Check the start date, beneficiary, release formula and amendment or revocation powers. A token allocation should not be counted as immediately liquid solely because it is shown in a project’s distribution chart.