The Importance Of Vesting Periods In Token Sales And Investor Relations

The period of investment refers to the time period in which a company grants to employees or investors the right to share its own property or equity. This can be done by stock options, restricted units of shares (RSU) or other restricted equity forms.

Why are the periods of investing:

• Aligns the interests : The investment periods help to align the interests of the employees and investors with those of the company, because they will benefit from the growth and success of the company only after a certain period.

• provides liquidity : Assignment periods allow employees or investors to sell their shares before the end of the award period, without supporting significant penalties.

• Reduces the risk : Investing periods can reduce the risk for companies, as they are less likely to give their own employees with an uncertain chronology for award.

• Improves employees’ keeping : By binding salary increases and performance bonuses, investing periods can help keep the top talent.

Types of periods of investment:

• Three -year -old sperers : Employees receive their equity after three years of service, when the period begins.

• Two -year vest : Employees receive their equity after two years of service, with a lump sum only for assignment.

• The announcement of one-two years : Employees receive their equity after one to two years of service, with a percentage-based investment structure.

best practices for periods of investment:

• Clearly communicate the terms of investing : Make sure that employees and investors understand the period of investment and any associated conditions.

• Set significant investment landmarks : Establish specific landmarks or performance values ​​to trigger investment events.

• Consider the investment programs

  

  : The investment periods may vary depending on the size of the company, the industry and the type of employees. Companies should consider these factors when setting up their investment programs.

Understanding the importance of periods of assignment in sales of tokens and investor relationships, companies can create more efficient financing programs that align the interests of employees and investors.