Vesting

A schedule restricting when tokens can be sold or transferred, typically for team and investors.

Vesting is a release schedule that prevents recipients of token allocations — typically founders, employees, and early investors — from selling immediately. A common structure: 1-year cliff (zero tokens released), then 36-month linear vesting (1/36 released monthly thereafter).

Vesting schedules don't bind the team to their stated terms unless they're enforced on-chain. Off-chain vesting agreements depend entirely on legal enforcement, which is weak across jurisdictions. On-chain vesting via verified vesting contracts is the gold standard. Watch for projects with "vested" tokens that turn out to be in wallets the team controls.