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Crypto to Chart: Understanding Link’s Vesting Period and Its Impact on XLM
The world of cryptocurrency has been abuzz with excitement lately, thanks in large part to the rise of Chainlink (LINK), a blockchain-based network that enables secure and efficient data sharing. One key factor that has contributed to LINK’s success is its unique vesting period for its native token.
What is Vesting Period?
The vesting period refers to the timeframe during which an investor or owner retains control over their cryptocurrency holdings. In other words, it’s 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 set period of time.
Chainlink (LINK) Vesting Period
Link has implemented a vesting schedule for its native token, LINK. According to the LINK whitepaper, investors can expect to own 80% of Link’s total supply within 5 years. This means that, as of now, only 20% of the total LINK supply remains uninvested.
The vesting period is structured such that the investor will begin receiving LINK tokens after a certain number of months or years have passed, depending on their investment amount and the project’s vesting 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 that amount in LINK tokens, while owning only 20% of the remaining 20%.
- As more investors contribute to the project and vest their holdings, 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 been gaining traction in recent years. Stellar’s native token, XLM, is one of the most widely held cryptocurrencies on the market.
XLM Vesting Period
The vesting period for XLM tokens is slightly shorter than Link’s. According to the Stellar white paper, investors can expect to own 80% of XLM’s total supply within 2 years. This means that, as of now, only 20% of the total XLM supply remains uninvested.
Stellar’s vesting period is structured such that investors will receive a fixed amount of XLM tokens after a certain number of months or years have passed, depending on their investment amount and the project’s vesting 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 that amount in XLM tokens, while owning only 20% of the remaining 20%.
- As more investors contribute to the project and vest their holdings, the proportion of unvested ownership decreases over time.
Conclusion
The vesting periods for LINK and Stellar’s native tokens offer a unique opportunity for investors to participate in the growth and development of these projects. By understanding the details of each token’s vesting schedule, investors can make informed decisions about when to invest and how much risk they’re willing to take on.
As the cryptocurrency landscape continues to evolve, it will be interesting to see how these two tokens fare over time. Will LINK continue to gain traction as a leader in the blockchain space? Only time will tell.
