Vesting Intervals

Vesting intervals are the specific time gaps between token distribution events in a non-continuous vesting model. For example, a schedule might release a portion of tokens every month, quarter, or year.

The choice of interval significantly impacts the market's reaction to each release, as shorter intervals lead to more frequent, smaller shocks, while longer intervals lead to larger, less frequent shocks. Selecting the right interval is a balance between administrative simplicity and market impact.

Longer intervals may allow for more significant price accumulation between releases, but they also create higher risk for volatility when the unlock date arrives. Projects must communicate these intervals clearly to ensure transparency.

They are a core parameter in the design of any token distribution agreement. Understanding these intervals is essential for investors who wish to hedge against potential price movements during unlock periods.