What Are Vesting Schedules? A Closer Look at PancakeSwap’s IFO Vesting Schedules
Vesting schedules limit the selling pressure of stakeholders and are essential for the growth of any project.
Understanding Crypto Vesting
Vesting is an essential strategy in the crypto industry. The concept has a major effect on the price of crypto assets. Protocols that utilize the strategy well have a better chance of sustaining and managing the price fluctuation of their native assets.
Crypto projects lock up a portion of their token supply before distribution. Crypto vesting is the process of holding, locking, and distributing tokens from an Initial Coin Offering (ICO).
Vesting Schedules
The Vesting Schedule is announced by projects that utilize crypto vesting. It defines the period during which the tokens purchased during ICO cannot be sold by stakeholders, and the intervals at which they can sell the tokens. Tokens released by the project according to the vesting schedule are called “vested tokens.”
The length of vesting schedules varies for every project, and the percentage of tokens released at each interval is set to reduce selling pressure. Sometimes, drawn-out vesting schedules may be a turn-off for early-stage investors.
To understand vesting schedules better, we will look at one of BNB Chain’s top platforms, PancakeSwap. The network's number one Decentralized Exchange (DEX) utilizes crypto vesting for its Initial Farm Offerings (IFO).
PancakeSwap IFO Vesting Schedule
PancakeSwap IFO gives investors early access to new tokens that the DEX will add to its platform. Similar to some ICOs, PancakeSwap IFOs have a vesting schedule. Let’s look at the latest IFO by the platform for Meta Apes ($PEEL), which will commence on August 4.
🦧 #PancakeSwap welcomes Meta Apes ($PEEL) to IFO!
— PancakeSwap 🥞 #BSC (@PancakeSwap) July 27, 2022
Read the proposal thoroughly and cast your vote ✨FOR FREE✨ – ape responsibly!
🗳 Vote: https://t.co/4LNMwxfbWe
👉 Learn about iCAKE & the latest format: https://t.co/bxbuz8LhDj
👉 How to participate: https://t.co/SnG9EVHtyc pic.twitter.com/0puFsp8Lw1
The table below shows that $PEEL tokens are allocated to the team, community rewards, staking rewards, and more. However, for this article, we are interested in the IFO allocation.
The total percentage for IFO is set at 5% (50 Million $PEEL) of the total supply (1 Billion $PEEL), and 30% will be unlocked at the Token Generation Event (TGE). Thus, only 30% of stakeholders' investment will be distributed after the IFO. At this point, holders of $PEEL token can only sell 30% of their entire allocation. This way, holders can not dump all their tokens at launch, negatively affecting the price.
According to the schedule, the remaining 70% will be released block-by-block over 90 days. That means PancakeSwap will distribute 1/90 of $PEEL holdings to each stakeholder every day.
Linear Vesting: In this case, the team will receive the same amount of $PEEL tokens every month for the next five years. The 6-month cliff is the lock-up period during which the team cannot sell any tokens.
In summary, for the $PEEL IFO, at launch PancakeSwap will unlock 30% of the tokens purchased by IFO investors. The remaining 70% will be released block-by-block for 90 days. Meanwhile, the team's allocation of $PEEL will be locked up for six months and then distributed over a period of five years.
Read PancakeSwap’s $PEEL IFO document for more details on the IFO sale.
Final Thoughts
A good crypto vesting schedule is important for the growth of any project. As shown in this article, PancakeSwap’s IFO for $PEEL includes an unlocking schedule that aims to reduce initial selling pressure and increase the token’s value in the long run.
What Is PancakeSwap:
PancakeSwap is a Decentralized Exchange (DEX) built on BNB Chain. It offers users various features such as Liquidity Pools, Swapping, Yield Farming, Syrup Pools, Automated Market Maker, Initial Farm Offering (IFO), NFT profile system, and many others.
In addition, the protocol helps users make the most out of their crypto assets by trading, earning through yield farming, and winning via lottery, prediction, and NFT collectibles. With the highest trading volumes in the market, PancakeSwap is the leading DEX on the BNB Chain.
Where to find PancakeSwap:
Website | Twitter | Medium | GitHub
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This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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Related News
Security on Cryptocurrency Exchanges: Ensuring Asset Protection in the World of Cryptocurrencies
From two-factor authentication to cold storage, discover the essential security measures for protecting your assets on cryptocurrency exchanges.
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article.
Cryptocurrency exchanges play a crucial role in the world of digital assets, providing a platform for the exchange of cryptocurrencies and tokens. However, along with the growing popularity of cryptocurrencies, the security risk on exchanges is also increasing. Hacker penetrations, fraudulent schemes, and cybersecurity threats are becoming increasingly serious issues. Various methods and security measures are applied to protect user assets and ensure the security of trading on crypto exchanges.
1. Two-Factor Authentication (2FA)
Two-factor authentication is one of the primary security measures on cryptocurrency exchanges. It requires not only entering a password but also additional confirmation, such as through a mobile device or email. This additional layer of protection significantly enhances the security of a user's account, as even if a malicious actor manages to obtain the password, they still cannot access the account without the second factor of authentication.
2. Cold Storage
Cold storage involves storing cryptocurrency assets offline, disconnected from the internet. This makes them inaccessible to hackers since physical presence and access to the storage are required to access the assets. Cold storage is one of the most reliable methods of storing cryptocurrencies and is widely used by exchanges to protect large sums.
3. Identity Verification and KYC (Know Your Customer)
Many cryptocurrency exchanges require users to undergo identity verification and KYC procedures to open an account and conduct trading operations. This allows the exchange to more accurately identify its customers and prevent fraud, as well as comply with regulatory requirements regarding anti-money laundering and counter-terrorism financing.
4. Multilayer Security System
Cryptocurrency exchanges often employ multilayer security systems, including network protection, transaction monitoring, intrusion detection, and automatic shutdown of suspicious activities. This helps to promptly respond to potential security threats and prevent possible attacks.
5. Secure Password Storage Methods
Cryptocurrency exchanges should provide secure password storage methods for users, such as hashing and salting, to protect them from unauthorized access. This helps prevent password leaks and account breaches.
6. Regular Audits and Penetration Testing
Regular security audits and penetration testing are necessary to assess the level of exchange security and identify vulnerabilities. This helps prevent potential attacks and improve overall security.
7. User Security Training
Cryptocurrency exchanges should provide educational materials and user guides on security basics to help users independently protect their accounts and assets. This includes recommendations for creating strong passwords, using authentication apps, and dealing with phishing attacks.
8. Geographic Server Distribution and Data Backup
Cryptocurrency exchanges can use geographically distributed servers and data backup systems to protect against unforeseen failures or attacks, ensuring continuous availability and preservation of user assets.
Conclusion
Security on cryptocurrency exchanges is an essential aspect of using digital assets. Security measures such as two-factor authentication, cold storage, identity verification, and others play a crucial role in protecting user assets and preventing cybersecurity threats. The development and improvement of these methods are key aspects of ensuring security on cryptocurrency exchanges in the future.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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