Vesting schedules limit the selling pressure of stakeholders and are essential for the growth of any project.
Understanding Crypto Vesting
Vesting is an essential strategy in the crypto industry. The concept has a major effect on the price of crypto assets. Protocols that utilize the strategy well have a better chance of sustaining and managing the price fluctuation of their native assets.
Crypto projects lock up a portion of their token supply before distribution. Crypto vesting is the process of holding, locking, and distributing tokens from an Initial Coin Offering (ICO).
Vesting Schedules
The Vesting Schedule is announced by projects that utilize crypto vesting. It defines the period during which the tokens purchased during ICO cannot be sold by stakeholders, and the intervals at which they can sell the tokens. Tokens released by the project according to the vesting schedule are called “vested tokens.”
The length of vesting schedules varies for every project, and the percentage of tokens released at each interval is set to reduce selling pressure. Sometimes, drawn-out vesting schedules may be a turn-off for early-stage investors.
To understand vesting schedules better, we will look at one of BNB Chain’s top platforms, PancakeSwap. The network’s number one Decentralized Exchange (DEX) utilizes crypto vesting for its Initial Farm Offerings (IFO).
PancakeSwap IFO Vesting Schedule
PancakeSwap IFO gives investors early access to new tokens that the DEX will add to its platform. Similar to some ICOs, PancakeSwap IFOs have a vesting schedule. Let’s look at the latest IFO by the platform for Meta Apes ($PEEL), which will commence on August 4.
The table below shows that $PEEL tokens are allocated to the team, community rewards, staking rewards, and more. However, for this article, we are interested in the IFO allocation.
The total percentage for IFO is set at 5% (50 Million $PEEL) of the total supply (1 Billion $PEEL), and 30% will be unlocked at…
