Crypto Vesting Explained
What is crypto vesting and how does it work? We’ve got you covered. This article explains what crypto vesting is, how it works and the benefits it provides to both crypto projects and investors.
What is vesting in crypto?
In the traditional business world, companies often include partial ownership of their business in the form of equity or stock as an incentive to motivate early employees to perform well and increase retention. The process by which employees acquire rewards, like equity or stock options, is called vesting.
Crypto vesting further builds on this “delayed gratification” approach to foster engagement and retention by injecting it directly into the economy of most crypto projects and businesses. This crypto specific economic structure is called tokenomics. Crypto vesting describes the process of releasing project tokens on a set schedule, as defined in the tokenomics, to both project members and investors.
Why is vesting important in crypto?
Vesting allows projects to ensure long term commitment on the part of project team members and investors. It also allows investors to purchase tokens before they hit the general marketplace, thus stabilizing the value of the token and decreasing the chances of a massive initial selloff. These selloffs often diminish the value of the token when it becomes available to the general marketplace.
What is a vesting period?
Also known as a lockup period, a vesting period refers to the time when the sale of tokens is restricted. A vesting period works to promote a healthier token economy by preventing holders from selling off their tokens when they get listed on an exchange(s). The vesting period also promotes token price stability and protects early investors from substantial price fluctuations.
How does Decubate’s vesting product helps crypto projects?
Decubate’s Vesting product streamlines the investor management experience by empowering projects to deliver a highly intuitive vesting portal, fast. Investors can track and manage their token holdings, view their total token allocation, monitor their vesting schedule, and claim available tokens — all in one place.
Decubate Vesting is a highly customizable and secure vesting portal that projects and investors can use to manage their token holdings. Decubate Vesting has been successfully audited by smart contract security firm, Haechi Audit. As an industry leader, Haechi has completed smart contract audits for over 300 partners, including the Ethereum Foundation, 1inch, and SushiSwap. Review the Decubate ATV audit.
Why crypto projects choose Decubate Vesting?
Our all-in-one vesting product makes token distribution extremely easy, enabling projects to build long-term relationships and trust with their investors. Decubate Vesting saves projects time and money by eliminating manual monthly airdrops. The product also supports multiple vesting strategies — linear, monthly and more — enabling projects to have greater flexibility. Projects that have utilized Decubate Vesting include: Sidus Heroes, BattleVerse, Bit Hotel, Ethereum Towers, Animalia and more.
How much does Decubate Vesting cost?
Contact us to learn more about the product and pricing.
Decubate is a web3 software company that makes token management easy. Our no-code products enable projects to launch a token without any technical know-how. Visit www.decubate.com to learn more.