Common Mistakes to Avoid When Implementing a Token Vesting Schedule
Introduction Token vesting schedules are a common mechanism used in the cryptocurrency and blockchain industry to distribute tokens gradually over a specified period. By implementing a token vesting schedule , project founders, team members, and investors can ensure a fair and controlled distribution of tokens, promoting long-term commitment and preventing immediate sell-offs that could negatively impact the project. However, it is essential to avoid common mistakes when designing and implementing a token vesting schedule to ensure its effectiveness and fairness. In this blog post, we will explore some of the most common mistakes and provide insights into how to avoid them. Insufficient Vesting Period One of the primary mistakes many projects make is having an insufficient vesting period. A short vesting period might seem appealing to token recipients as they can access their tokens quickly. However, this approach can lead to undesirable outcomes, such as immediate token dumps and lack...