Solster Decentralized Finance has another utility - Token Vesting.
Solster uses Bonfida token vesting mechanism to lock and release tokens.
Solster will have its own vesting mechanism in the future. We have already mentioned in the roadmap to prevent market damping and token manipulation. It’s to ensure the prices of tokens remain stable and don’t fall sharply.
Token vesting comes in handy for new projects. It releases their tokens to the public to raise funds
To support their projects
People wishing to support the new projects can purchase their tokens and sell them off by the end of the purchase period in the market.
The common practices like selling-off initial token purchases by early investors create an excessive supply of the tokens. It causes a massive dip in the token price.
Token Vesting ensures such situations don’t arise and boosts confidence in the early contributors of the project. They can lock a certain amount of tokens for 1 or 2 years, depending on their requirements.
It’s to ensure the decentralized fundraising for new projects on the Solster Ecosystem don’t meet such unwarranted experiences.