What Is a Vesting Schedule, And How Does It Help Metain Investors?
#TLDR: Tokens for Metain team members and advisors are locked in a total of 4 years to make sure the project develops sustainably in long term.
What is a Vesting Schedule?
In traditional market, a company may offer you stock as part of an employment deal. However, your stock will have to go through the Vesting phase. This means you have to wait a certain amount of time before you have the right to use these shares. This encourages you to stay with the company longer. Essentially, Vesting is the process of deferring the right to use stock.
Vesting in crypto is similar although it is done in a more extensive way. It is the process of locking and releasing tokens after a certain time. Tokens usually belong to team members, advisors, partners, who have contributed to the development of the project.
The main component of the Vesting schedule is Cliff: the minimum time that team members, advisors, partners must stay in the project to receive their first share of tokens. Cliff is usually six months or one year.
Benefits of Vesting Schedule
PROTECT INVESTORS’ INTERESTS
Crypto is highly volatile. Retail investors make big gains in price, and the original investors or team members can then sell, driving down the price and making retail investors lose money.
This represents a major risk to the token’s stability. Vesting allows tokens to be properly distributed. This makes Vesting an integral part of crypto. It protects all participants. Above all, it ensures the stability of a project and the viability of the project in the long run.
PROTECT THE COMPANY FROM THE DEPARTURE OF THE FOUNDER/CO-FOUNDER
While a startup is initially based on mutual trust and long-term cooperation, founders may decide to leave the company early. Thus, the probability of the startup’s success decreases. Vesting can influence founders’ decision to leave and make them more committed to the long term.
INCREASE THE OPPORTUNITY TO RAISE CAPITAL FOR THE PROJECT
Vesting helps founders build the right equity structure. It should be as transparent and logical as possible to better mobilize investment.
With Vesting, people leaving the company may not have tokens or a small percentage. In this case, the investor is assured that the tokens of the project are distributed equally with the roles of the individuals.
ENCOURAGE EMPLOYEES TO STAY ENGAGED
The Vesting setup increases their motivation to stay. They know the longer they stay in the company, the more tokens they will receive. This is especially important for fast-growing startups.
About Metain
Metain is the first co-investment platform that is highly profitable, transparent, safe, and powered by blockchain technology, where crypto investors can find shelter for their hibernated assets during the winter.
Team Member and Advisor commit to vest token in a 4 years to ensure the commitment and stability of the project, to bring the highest efficiency to investors.
