Vesting periods, vesting schedules, token unlocks and vested tokens.
What exactly do these mean, and how does it affect the circulating supply of a cryptocurrency?
If you are in the crypto space and looked into the tokenomics of a project or invested in a newly launched cryptocurrency, then odds are you may have seen the term "vesting" being thrown around.
Commonly used to represent retirement plan benefits or pension plans, "vesting" is used to convey the legal right to current or future payment, asset or benefit, typically from the employer.
But for those familiar with traditional finance, "vesting" has a slightly different meaning in the cryptocurrency space.
On today's CoinMarketCap episode we explore what does Vesting mean in crypto:
0:52 - What Are Vesting Schedules?
2:39 - What Are Token Unlocks?
3:49 - What Are Vested Tokens?
4:46 - Why Do Projects Have Vesting Schedules?
5:40 - How Does Token Vesting Impact the Token Supply?
6:39 - How Do You Calculate the Circulating Supply?
🔔 From crypto news, to market moves, and to educational how to videos. If you want something more than just hype and to actually learn about crypto, make sure to hit the subscribe button right now and turn on notifications to not miss out on new videos!
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What exactly do these mean, and how does it affect the circulating supply of a cryptocurrency?
If you are in the crypto space and looked into the tokenomics of a project or invested in a newly launched cryptocurrency, then odds are you may have seen the term "vesting" being thrown around.
Commonly used to represent retirement plan benefits or pension plans, "vesting" is used to convey the legal right to current or future payment, asset or benefit, typically from the employer.
But for those familiar with traditional finance, "vesting" has a slightly different meaning in the cryptocurrency space.
On today's CoinMarketCap episode we explore what does Vesting mean in crypto:
0:52 - What Are Vesting Schedules?
2:39 - What Are Token Unlocks?
3:49 - What Are Vested Tokens?
4:46 - Why Do Projects Have Vesting Schedules?
5:40 - How Does Token Vesting Impact the Token Supply?
6:39 - How Do You Calculate the Circulating Supply?
🔔 From crypto news, to market moves, and to educational how to videos. If you want something more than just hype and to actually learn about crypto, make sure to hit the subscribe button right now and turn on notifications to not miss out on new videos!
🔵 Coin Market Cap is the world's most-referenced price-tracking website for cryptoassets in the rapidly growing cryptocurrency space. Its mission is to make crypto accessible all around the world through data and content.
📲 Download our app!
IOS : https://apple.co/3dOkokH
Android : https://bit.ly/3gHyJkS
🤝 Join CoinMarketCap!
https://bit.ly/3dVaEoS
Follow CoinMarketCap on social!
https://twitter.com/CoinMarketCap
https://www.facebook.com/CoinMarketCap
https://www.instagram.com/CoinMarketCap
https://reddit.com/r/CoinMarketCap
https://t.me/CoinMarketCap
📩 Subscribe to our Newsletter!
https://coinmarketcap.com/newsletter/
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Francisco Gimeno - BC Analyst Anyone versed on finances or working for a big company understand the term "vesting", used to convey the legal right to current or future payment, asset or benefit, typically from the employer. It can be one year, five years, whatever is agreed between two sides. In crypto the term "vesting" also exist when investing in crypto platforms or blockchain based companies with their own tokens. Usually the tokenomics of each project will have a chapter on the "vesting" which must be respected. Tokens are locked until a certain amount of time when can be unlocked to assure that there is a proper Token supply and no pump and dumps, allowing the project to grow before the unlocking happens. Tokenomic's experts are the ones calculating the "vesting" periods according to each project. Watch this to understand more.