8.- WHAT ARE LOCK-UP AND VESTING PERIODS

Lock-up and Vesting Periods

We have already seen how the different phases of sale or subscription of kuulkoin will be carried out.

Below we will briefly see what lock-up periods and Vesting periods are about.

Lockup Periods

The term lockup refers to a specific period of time in which tokens cannot be transmitted. Usually, these locks are used as a preventative strategy to keep the value of the token stable in the market.

This helps prevent large holders of the same token from selling them once they go on the market, which would likely cause prices to plummet very quickly.

Vesting Periods:

Vesting refers to the progressive release of the token to be transmitted. This means that the tokens will be released progressively during the period indicated for each holder. That is, if it indicates a vesting period of 3 months, the tokens will be released proportionally in 3 months to the holder in order to be transferred.

That is, in 1 month certain tokens are released that can already be transferred, the next month another part of the tokens are released and at the end of the third month 100% of the tokens are already released and can be transmitted to other people.

This period does not mean that people do not own the token. If they have ownership of the token, its transmission is only blocked during the periods indicated.

In the sale phase description, a lockup period and a vesting period are indicated for the owners.

Similarly, when tokens are delivered through airdrops or marketing campaigns, they will be subject to lockup and vesting periods.

**Check the Whitepaper for any questions.

🇺🇸WHITEPAPER (eng)