What Is Token Vesting?

Token vesting is a process by which the distribution of tokens is delayed over a certain period. This is often used to align the interests of token holders with those of the project by ensuring that the individuals or entities granted tokens are incentivized to work toward the project's long-term success. A practical example of token vesting would be a startup issuing tokens to its employees. Instead of allowing the employees to sell their tokens on the open market immediately,…