Intermediate Blockchain & Web3
Q68 / 100

What is the purpose of a "vesting schedule" for project tokens?

Correct! Well done.

Incorrect.

The correct answer is A) It gradually releases tokens to team members or investors over time, rather than all at once, to align long-term incentives and reduce sell pressure

A

Correct Answer

It gradually releases tokens to team members or investors over time, rather than all at once, to align long-term incentives and reduce sell pressure

Explanation

Vesting schedules lock tokens for a period and release them gradually (often with a "cliff"), discouraging early dumping and aligning stakeholders with the project's long-term success.

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68/100