Vesting in crypto, explained
Vesting in crypto refers to the scheduled release of tokens or assets over a predetermined period, often used to incentivize holders.
The process of locking down cryptocurrency tokens or coins for a predetermined amount of time before allowing the tokenholder to fully access or transfer them is known as crypto vesting.
It is commonly used in initial coin offerings (ICOs), token sales and other cryptocurrency-related fundraising activities. Crypto vesting aims to incentivize long-term dedication and deter early investors or team members from hastily selling their tokens for a profit and then leaving the business. Individuals or entities that get tokens gradually gain access to them over time, usually at predetermined intervals, by imposing a vesting period.