Different types of vesting in the crypto space include time-based, milestone-based, hybrid, and reverse vesting.

Time-Based Vesting

With time-based vesting, tokens are gradually released to holders over a set period. For example, Ethereum implemented a time-based vesting system for its early supporters. Multiple publicly accessible smart contracts can gradually vest ERC-20 tokens, such as those allocated to founders in a crowdfunding campaign. However, there is no equivalent method for vesting "raw" Ethereum.

Raw Ethereum typically refers to the native cryptocurrency in its unaltered state on the Ethereum blockchain. This differs from representations of Ethereum on other blockchains, such as wrapped Ethereum or ERC-20 tokens on the Ethereum network.

Milestone-Based Vesting

With milestone-based vesting, token distribution depends on achieving specific project goals or benchmarks. Some blockchain projects may implement vesting systems for their partners and team members based on milestones.

For instance, a certain percentage of allocated tokens may be distributed upon the successful implementation of a specific feature, completion of a protocol upgrade, or other notable project milestones.

Hybrid Vesting

Hybrid vesting combines elements of time-based and milestone-based vesting. Blockchain projects often adopt hybrid vesting models for token distribution. A portion of tokens allocated to the team and early supporters follows a time-based vesting schedule, gradually unlocking over a set period.

Meanwhile, another portion is tied to the achievement of predetermined project milestones. This dual approach ensures alignment with project goals while recognizing long-term commitment and successful milestones.

Reverse Vesting

Under the concept of "reverse vesting," tokens initially held by recipients may be forfeited if specific conditions are not met—the opposite of typical vesting.

Mining rewards are distributed on a schedule designed to promote long-term network alignment: 25% of the block reward is released immediately to improve miner cash flow, while 75% vests gradually over 180 days. The Protocol Labs team and Filecoin Foundation will receive additional Filecoin (FIL) tokens over six years, while SAFT investors will receive theirs over three years.