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Onchain Economics
Tokenomics

Vesting

A schedule that gradually releases tokens to recipients over time, preventing immediate selling.

In-Depth Explanation

Vesting aligns long-term incentives by requiring team members, investors, or airdrop recipients to wait before accessing tokens. Common structures include linear vesting (equal amounts over time) and cliff vesting (nothing until a date, then immediate or gradual release).

Related Terms

Fully Diluted Valuation

FDV

The theoretical market cap if all tokens (including locked, unvested, and unissued) were in circulation.

Circulating Supply

The number of tokens currently available and trading in the market, excluding locked, vested, or reserved tokens.

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Emissions

New tokens distributed by a protocol as incentives, typically to liquidity providers or users.

Liquidity Mining

Earning token rewards by providing liquidity to a DeFi protocol.

Token Buyback

When a protocol uses revenue to purchase its own token from the open market, reducing circulating supply.

Dividend

Direct distribution of protocol revenue to tokenholders, typically in ETH, stablecoins, or the protocol's native token.

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