Vesting is a method of retaining the capital invested in a project by returning it in kind in small instalments or parts over a predetermined time period.

It should be noted that the vesting boom coincided with the explosive growth that startups experienced a few years ago.
Obtaining financing or initial capital for a new company with a small structure can be a difficult task. However, this is not the end of the story.

In the context of cryptocurrencies, vesting refers to the gradual release or unlocking of a certain amount of tokens over a specified period. This mechanism is often employed in initial coin offerings (ICOs), token sales, or as part of incentive programs for project contributors. Vesting is implemented to promote long-term commitment and discourage quick sell-offs by ensuring that participants receive their tokens gradually rather than all at once.

Crypto projects may set up vesting schedules that specify when and how participants gain access to their tokens. These schedules could involve time-based vesting, where tokens are released periodically, or milestone-based vesting, tied to the achievement of project goals. Vesting aligns the interests of token holders with the success and development of the project, fostering a more stable and sustainable ecosystem. It is a common practice to enhance investor confidence and commitment in the dynamic and often volatile crypto space.