Description: Vesting is a process by which tokens are gradually released to their holders over a set period, often used to incentivize long-term holding. This mechanism is fundamental in the blockchain and decentralized finance (DeFi) ecosystem, as it helps mitigate market volatility and fosters project stability. Instead of releasing all tokens at once, vesting allows holders to receive their tokens in tranches, which can be tied to specific milestones or a predefined schedule. This not only benefits investors, who can see sustained growth in their investment, but also protects projects from the pressure of massive sell-offs that could occur if all tokens were released simultaneously. Additionally, vesting can be used as a governance tool, where token holders have an incentive to actively participate in the decision-making of the project, as their participation is aligned with the long-term success of the initiative. In the context of high-speed and low-cost blockchain networks, vesting becomes an essential component for creating a robust and sustainable ecosystem.
