- Waivly Learn
- Posts
- 📜 The Mechanics of Token Vesting
📜 The Mechanics of Token Vesting
Preventing early sell-offs and rug pulls
Waivly
February 22, 2025
Sponsored by
Hey Learners! 📚 They say you learn something new every day, and that’s true.. if you’re a Waivly Learn reader.
It’s that time of the day where you get to learn something brand new or level up your knowledge and skills on a topic you’ve already started to explore.
Today, we’re learning about token vesting. Let’s dive in!
TODAY’S LESSON
SECURING LONG-TERM VALUE IN CRYPTO
The Mechanics of Token Vesting
Token vesting is a key safeguard in Web3, ensuring investors, teams, and early supporters stay committed. Without it, large token holders can cash out immediately, causing price crashes and eroding trust. By locking tokens and releasing them gradually, vesting prevents sudden sell-offs and promotes long-term stability.
At its core, vesting means tokens are distributed over time rather than all at once. Founders, employees, and investors receive their tokens in scheduled portions, keeping them invested in the project’s success. This approach aligns incentives and discourages quick profit-taking at the expense of the community.
Different vesting models serve different needs. Linear vesting releases tokens steadily, ensuring predictable liquidity. Cliff vesting locks tokens for a set period before a partial release, keeping early contributors engaged. Some projects use performance-based vesting, unlocking tokens only when milestones are met.
LESSON SPONSORED BY
HubSpot
Unlock expert marketing insights with Masters in Marketing by HubSpot!
This weekly newsletter brings you:
Strategies straight from industry leaders like the NBA, Liquid Death & Oatly.
Behind-the-scenes stories of campaigns that crushed it.
Actionable tips to boost your results today.
Stay ahead in the ever-changing marketing world. Don’t miss out—subscribe now and level up your skills!
Vesting is also a defense against rug pulls, where project creators dump their holdings and abandon the project. When core team tokens are locked, investors can trust that insiders can’t cash out instantly. This added security helps legitimize projects and attract serious backers.
Beyond security, vesting strengthens tokenomics by preventing market oversupply. A well-structured vesting plan reduces volatility and maintains a stable price trajectory. Some projects even extend vesting to liquidity providers and advisors to reinforce long-term alignment.
While it may not be the most exciting topic in crypto, vesting is essential for protecting a project's value and credibility. Without it, even promising ventures risk collapsing under early sell-offs. A strong vesting strategy builds trust, stability, and long-term growth.
LEVEL UP YOUR LEARNING
ACCESS EXCLUSIVE COURSES, LESSONS, AND MORE
Become a Learn Plus member
As a Waivly Learn Plus member, you gain exclusive access to:
Exclusive access to courses 🎓
Members-only lessons 📖
Private community access 🌐
Personalized learning assistance 🤝
Advanced professional development training 🚀
And much more 🎉
Waivly Learn Plus is designed to elevate your growth through exclusive access to courses and members-only lessons that target essential skills and knowledge. With advanced professional development training, you'll gain practical tools to accelerate both personal and professional success, empowering you to continually expand your expertise.
Alongside our premium content, you'll be part of a private community of driven learners and experts who share your commitment to growth. Here, you can connect, exchange insights, and find support as you work toward your goals. Join Waivly Learn Plus today to transform your learning journey with the resources and connections you need to thrive!
UNTIL NEXT TIME
THANKS FOR READING
That wraps up today’s Waivly Learn lesson
We hope you enjoyed today’s lesson 🙌 Let us know if there’s a topic that you want to learn about that you haven’t seen from us. Want to share feedback or suggestions? Respond to this email - We read every reply! Make sure to follow us on X, TikTok, YouTube, Instagram, and LinkedIn for more from us each day - We’re @Waivly everywhere!
Reply