Token Vesting Models
distribution timing frameworks
Token Vesting Models represent the structured approaches used to control how and when tokens are released to participants after allocation. These models are core to responsible tokenomics, helping protocols manage inflation, reduce early sell pressure, and align stakeholder behavior with long-term goals. Each model defines a time-based unlocking strategyÔÇöranging from delayed cliffs to steady linear flows or backloaded incentivesÔÇötailored to balance liquidity access with project sustainability.
Use Case: A Web3 startup utilizes different vesting models for each stakeholder group: investors receive cliff vesting with a 1-year delay, core contributors have linear vesting over 24 months, and DAO rewards are issued using backloaded vesting with the largest release at the end of year three.
Key Concepts:
- Vesting Curves ÔÇö Mathematical functions defining unlock pacing.
- Cliff Vesting ÔÇö No release until a fixed period elapses.
- Linear Vesting ÔÇö Gradual and equal token release over time.
- Backloaded Vesting ÔÇö Majority of tokens unlock later in the cycle.
- Token Unlock Structures ÔÇö Broader framework for release mechanics.
Summary: Token Vesting Models are the architectural blueprints behind responsible token distribution. They shape liquidity flows, enforce contributor commitment, and establish trust in a protocolÔÇÖs long-term vision by ensuring that token access unfolds in sync with the projectÔÇÖs development lifecycle.
| Model | Unlock Behavior | Best Fit | Retention Outcome |
|---|---|---|---|
| Cliff Vesting | All unlocks begin after delay | Founders, Advisors | Delays early exits |
| Linear Vesting | Even release per interval | Contributors, LP Incentives | Stable alignment |
| Backloaded Vesting | Low initial, heavier late unlock | DAO Builders, Ecosystem Growth | Strong long-term hold |
| Custom Vesting Curves | Variable release logic | Grants, Flexible Deployments | Precision targeting |