Definition
A schedule that locks tokens and releases them gradually over time, preventing team members, investors, or founders from selling all their tokens immediately after launch.
Why It Matters
Vesting schedules protect retail investors. A project where all team tokens unlock immediately after launch is a major red flag — developers can dump their holdings on buyers.
Example
A DeFi protocol's founding team has a 4-year vesting schedule with a 1-year cliff — meaning no tokens are released for the first year, then 25% per year after that.
Related Terms
Tokenomics
Token
Market Cap
Rug Pull