What is vesting?

As you delve into the world of cryptocurrencies, you may come across the term "vesting," a concept integral to ensuring the stability, commitment, and shared success of blockchain projects. In this article, we'll explore the basics of vesting and its significance in the crypto space.

What is Vesting?

Vesting is a mechanism designed to regulate the release of tokens to contributors over time, especially in the context of fundraising events like token sales or initial coin offerings (ICOs). Instead of immediately granting full ownership of tokens, vesting schedules are employed to stagger token access based on predetermined conditions.

How Does Vesting Work?

Two common types of vesting schedules are linear vesting and cliff vesting.

    •    Linear Vesting: Tokens gradually become accessible to contributors over a specified period. For example, if the vesting period is four years, 25% of the allocated tokens may be available each year.

    •    Cliff Vesting: This model involves an initial waiting period (the "cliff" or „lockup“) followed by gradual token release. For instance, with a one-year cliff and a total vesting period of four years, 25% of tokens become accessible after the first year, with the remainder vesting incrementally.

Floin Token Vesting

The Floin Token (FLTK) Vesting is described in detail in our Tokenomics, and you can find the step-by-step guide on how to check and/or claim your vested tokens here. In short, the vesting of FLTK depends on the phase you purchased the token in.

·      Seed phase – three-month lockup, and then an 18-month gradual release

·      Private phase – one-month lockup, and then a 15-month gradual release

·      Public phase – 5% released the first day after the end of the ICO, and then a 9-month gradual release

It’s important to note that the vesting schedules operate on a continuous, linear basis. This means that access to the vested tokens will increase with each passing moment over this period, promoting a consistent and predictable release of tokens.