Linear Distribution
Linear distribution refers to a vesting method where tokens are released in equal, incremental amounts over a defined timeframe. This approach provides a predictable and steady supply of tokens into the market, avoiding the sudden price shocks associated with large, one-time unlocks.
By smoothing out the emission schedule, linear distribution helps maintain a more stable price floor and allows the market to absorb the new supply gradually. It is considered a best practice in token design because it reduces the incentive for insiders to dump their entire allocation at once.
This method simplifies financial modeling for investors, as they can accurately forecast the increase in circulating supply over time. It promotes a more balanced economic environment where supply growth is proportional to the development progress of the project.