The process of locking cryptocurrency tokens for a predetermined period before allowing token holders full access or transfer is called crypto vesting.

It is commonly used in Initial Coin Offerings (ICOs), token sales, and other cryptocurrency-related fundraising activities. Crypto vesting aims to incentivize long-term commitment and discourage early investors or team members from quickly selling tokens for profit and then leaving the business. Individuals or entities receiving tokens gradually gain access to them over time.

Although vesting schedules may vary, they typically include a waiting period (known as a cliff) followed by regular release periods. For example, tokens may have a one-year waiting period before being distributed in equal monthly installments.

Vesting is usually applied to:

• Team and Advisors: To ensure ongoing dedication from team members and advisors, tokens granted to project developers may be subject to vesting.

• Investors: Early investors in ICOs or token sales may also be subject to vesting periods to discourage short-term speculation.

• Founders: To align their interests with the project's long-term performance, the project's founders or core team members may receive their tokens with vesting.

Typically, tokens are unlocked after the vesting period through various methods. During this process, tokens previously locked for a predetermined time are released. Due to this unlocking, token holders can gradually access their assets over time, often in phased or incremental stages. Release conditions may include meeting milestones, time-based schedules, or achieving performance metrics.