Token vesting manages the gradual release of tokens into circulation, impacting available supply and market dynamics.
By controlling the supply of tokens available on the market over time, token vesting directly influences the circulating token supply. Tokens subject to vesting are typically not immediately available for trading or circulation.
Therefore, until these tokens are fully vested, they are not considered part of the available supply. The circulating supply decreases during the vesting period, which affects metrics such as market capitalization and available liquidity.
When tokens are gradually unlocked or vested according to a preset schedule or conditions, they enter the circulating supply. This can influence market dynamics, investor sentiment, and the supply-demand balance of the ecosystem.