Why Do Crypto Tokens Have Vesting Periods?

When a new crypto project launches, not all of its tokens are immediately available to the public. Tokens allocated to founders, employees, early investors or ecosystem participants may be locked for months or even years before gradually entering circulation. These vesting periods are designed to align long-term incentives and prevent insiders from selling everything immediately after launch. But they can also create future selling pressure when large allocations become unlocked. For investors, understanding who owns the locked supply and when those tokens become available can provide useful context before buying. Should vesting schedules be considered as important as a project’s technology and roadmap?