Vesting Schedule Automation
Plan, setup, and execute your token vesting schedule with Kaizen.Finance.
Last updated
Plan, setup, and execute your token vesting schedule with Kaizen.Finance.
Last updated
One of the Kaizen's most popular features is the ability to plan, set up, and automatically execute a token vesting schedule.
Vesting schedules are an important part of tokenomics. Vesting schedule defines how and when tokens are distributed and/or unlocked. A well-designed vesting schedule helps prevent market volatility and protects both the project and its investors.
Here are some key advantages of automating vesting and distribution schedules:
Reduced Volatility: Automated vesting and distribution schedules help mitigate the risk of sudden large sell-offs by early investors or team members, which can lead to significant market volatility. By gradually releasing tokens over time, the impact on the market is smoother and more controlled.
Long-Term Commitment: Vesting schedules encourage token holders and team members to stay committed to the project for the long term. They are more likely to actively contribute and support the project's success when they know their tokens will be gradually unlocked over an extended period.
Dumping Prevention: Vesting schedules prevent large token holders from dumping their entire token allocation on the market at once, which can lead to a sharp decline in token value. Gradual distribution reduces the risk of token price manipulation and fosters a healthier market environment.
Enhanced Credibility: Projects with transparent and automated vesting and distribution schedules are often viewed as more credible and trustworthy by the crypto community and investors. This can positively impact the project's reputation and potential for further investment.
Community Trust: A fair and automated vesting and distribution schedule enhances trust within the community. It shows that the project is committed to equitable token distribution and prevents any perceived unfair advantages for early investors or team members.
Using Kaizen you can set clear lock periods, define distribution dates for each investment round and sales, and automatically follow that schedule using smart contracts.
