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How Does Vesting Work?

Modified on Mon, 9 Sep at 11:02 AM

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.

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