Vesting FAQ
Team tokens are required for development processes, payments to and from the team, and other endeavors, related to the day-to-day life of the project. However innocent that sounds, team tokens still present a certain danger to the investors. If they are simultaneously released in a large sum, they may in certain situations drive the token price down. Which results negatively on the investors’ financial well-being.
Team vesting is the process of gradual release of team tokens. Usually, teams make a promise to their users to release the tokens in smaller parts so that it wouldn’t affect the price. However, the investors have to trust the team to follow through.
Essentially Team Tokens Locking is similar to Liquidity Locking. However, there are several differences.
The tokens are locked into a contract with the instruction to release a specific amount at a specific time. Said time is available to the investors and other users and is not subject to a change. This way, the investors can be prepared for a token release and control their own investment.
With Team Tokens locker investors don’t have to blindly trust the team’s promise. Instead, they can rely on an automatic system that will release the tokens at a previously stated date and time.
It’s a question of trust and the project leaders’ willingness to commit to their word and plans. This way they are more likely to follow the initially stated roadmap, and it’s impossible for them to accidentally or on purpose drop the token’s price.
This is important for the investors and the project owners. It’s a positive marketing element, that can attract users, that are looking for a secure project.
Last modified 1yr ago