Vesting Schedule Explained – What It Means for Crypto Projects

When working with Vesting Schedule, a timed plan that releases tokens to founders, investors or team members over a set period. Also known as Token Vesting, it helps prevent sudden sell‑offs and aligns incentives across the ecosystem.

A Token Allocation, the way a project divides its total supply among stakeholders is the first piece of the puzzle. The allocation decides who gets what, but without a vesting schedule those tokens could flood the market instantly. That's why a well‑designed vesting schedule encompasses token allocation, turning a static split into a dynamic, controlled release.

Next comes the Lockup Period, a mandatory hold time before any tokens can be transferred. The lockup period requires a clear vesting schedule, because without it early investors could cash out the moment the token lists, harming price stability. Projects often set a lockup of six months to a year to give the market time to absorb new supply.

The shape of the release is defined by the Release Curve, the mathematical model (linear, exponential, cliff, etc.) that dictates how many tokens unlock each interval. A smooth release curve influences liquidity provision and long‑term holding behavior, making it a critical tool for managing price volatility. Whether a project chooses a steady linear drip or a front‑loaded cliff, the curve works hand‑in‑hand with lockup periods and allocation plans.

All these pieces—allocation, lockup, and release curve—combine to form a robust vesting schedule that protects investors, supports token price, and keeps the team motivated. Below you’ll find a curated list of deep‑dive guides that break down each component, show real‑world examples, and give you the tools to evaluate any project's token economics with confidence.

How Token Vesting Protects Cryptocurrency Token Value

Token vesting locks up supply and releases it over time, protecting cryptocurrency token price from sudden drops and aligning stakeholder incentives.

  • Oct, 21 2025
  • 18