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Crypto to Chart: Understanding Link’s Vesting Period and Its Impact on XLM
The cryptocurrency world has been in a frenzy lately, largely due to the rise of Chainlink (LINK), a blockchain-based network that enables secure and efficient data sharing. One of the key factors that has contributed to LINK’s success is the unique vesting period of its native token.
What is the vesting period?
A vesting period refers to the length of time an investor or owner maintains control over their cryptocurrency holdings. In other words, it is a contractual agreement between the investor and the project (or company) that outlines how much of their investment they will retain ownership of at regular intervals, usually over a certain period of time.
Chainlink (LINK) Vesting Period
Link has implemented a vesting program for its native token, LINK. According to LINK’s white paper, investors can expect to own 80% of the total Link supply within 5 years. This means that currently, only 20% of the total LINK supply remains unvested.
The vesting period is structured so that the investor will start receiving LINK tokens after a certain number of months or years, depending on the value of their investment and the project’s award schedule. For example:
*Investors who purchase $10 worth of Link at launch will own 0% of the total supply.
*After 5 years, investors who purchased $1 million worth of Link will receive 80% of this amount in LINK tokens, while only owning 20% of the remaining 20%.
- As more investors contribute to the project and acquire their stakes, the proportion of unvested ownership decreases over time.
Stellar (XLM) – A Safe Haven for Long-Term Investors
Stellar, a decentralized payment network that uses blockchain technology to facilitate fast, cheap, and secure cross-border payments, has gained popularity in recent years. Stellar’s native token, XLM, is one of the most widely traded cryptocurrencies on the market.
XLM Acquisition Period
The award period for XLM tokens is slightly shorter than that of Link. According to Stellar’s white paper, investors can expect to own 80% of the total XLM supply within 2 years. This means that currently, only 20% of the total XLM supply remains unclaimed.
The Stellar token award period is structured so that investors will receive a fixed amount of XLM tokens after a certain number of months or years, depending on the value of their investment and the project’s token award schedule. For example:
*Investors who purchase $10 worth of XLM at launch will own 0% of the total supply.
*After 2 years, investors who purchased $1 million worth of XLM will receive 80% of this amount in XLM tokens, while only owning 20% of the remaining 20%.
- As more investors contribute to the project and acquire their stakes, the proportion of unvested ownership decreases over time.
Conclusion
The award periods for LINK and Stellar’s native tokens provide investors with a unique opportunity to participate in the growth and development of these projects. By understanding the details of each token’s award schedule, investors can make informed decisions about when to invest and the level of risk they are willing to take.
As the cryptocurrency landscape continues to evolve, it will be interesting to see how these two tokens perform over time. Will LINK continue to gain ground as a leader in the blockchain space? Only time will tell.