Linear Vesting

Linear vesting is a method of distributing tokens over a set period at a constant rate, rather than in large, periodic lump sums. This approach provides a smoother supply curve, which helps in mitigating the volatility associated with sudden token unlocks.

By releasing tokens in small increments, such as daily or block-by-block, the protocol ensures that the market can better absorb the incoming liquidity. This is often preferred by investors and team members as it provides a predictable cash flow and reduces the temptation to sell a large position at once.

It also aligns with the ongoing nature of development and operational costs. From a market microstructure perspective, linear vesting is less likely to cause the price spikes or crashes that often accompany cliff-based releases.

It represents a more stable and mature approach to token distribution. Protocols often combine a cliff with a subsequent linear vesting schedule to balance initial commitment with long-term retention.