What is vesting?

By Kromatika | Kromatika Education | 21 Apr 2022


Vesting is the process of releasing tokens to investors after a lockup period, which is a ratio of time to a quantity of token acquisition. The vesting system helps to limit rug pulls by highlighting the time before the team tokens are acquired. In addition, this crypto asset release system also ensures that investors will not cause the price to plunge.


Advantages are numerous, such as giving legitimacy to the development team by avoiding rug pulls to guarantee a long-term commitment and give confidence to future investors. Or limit the increase in volatility following massive sales, as they are introduced gradually, the project can acquire investors without a price drop. This will balance supply and demand over time. These details are indicated in the whitepaper for example the one of Kromatika which uses this process. The future of a project and the interests of the first investors are thus guaranteed.

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Kromatika
Kromatika

KROMATIKA is a decentralized crypto trading protocol enabling users to trade crypto assets with ZERO swap fees, NO Front running bots, and NO Price Slippage.


Kromatika Education
Kromatika Education

This blog is dedicated to short educational articles that allow a better understanding of the world of cryptocurrencies. If you are interested in Kromatika and the different benefits we offer, here is where you can find us! - dApp : https://app.kromatika.finance/ - Twitter : https://twitter.com/KromatikaFi - Home Page : https://kromatika.finance/

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