What are the advantages of using linear vesting for cryptocurrency token distribution?

3 answers

• Feb 17, 2022 · 3 years ago
  Linear vesting is a method of gradually releasing tokens to investors or team members over a specific period of time. One advantage of using linear vesting is that it helps prevent token dumping, which can negatively impact the token's price and market stability. By distributing tokens gradually, it allows for a more controlled and sustainable token supply in the market. Additionally, linear vesting can incentivize long-term commitment and discourage short-term speculation, as token holders have to wait for their tokens to fully vest before they can sell or transfer them. This can help foster a stronger and more dedicated community around the project.
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• Feb 17, 2022 · 3 years ago
  Linear vesting is like a slow and steady drip of tokens, rather than a sudden flood. This approach can be beneficial for cryptocurrency token distribution because it helps maintain a stable market and prevents sudden price crashes. By gradually releasing tokens, it gives the market time to absorb the supply and adjust accordingly. It also provides a fair distribution mechanism, as tokens are released over time instead of being concentrated in the hands of a few early investors. This can help build trust and confidence in the project, attracting more participants and creating a healthier ecosystem.
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• Feb 17, 2022 · 3 years ago
  Linear vesting is a widely used method in the cryptocurrency industry for token distribution. It ensures a fair and controlled release of tokens, which can help maintain market stability and prevent price manipulation. At BYDFi, we believe that linear vesting is an effective way to align the interests of token holders with the long-term success of the project. By gradually unlocking tokens, it encourages token holders to stay invested and actively contribute to the project's growth. This approach also allows for flexibility in adjusting the vesting schedule based on the project's needs and market conditions. Overall, linear vesting can contribute to a more sustainable and balanced token distribution strategy.
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