🪙Token Vesting Mechanisms
BrightyPad Decentralized Finance also takes advantage of another utility called token vesting. BrightyPad uses the Bonfida token vesting mechanism to lock and release tokens.
BrightyPad will have its vesting mechanism operational as soon as the developers finish the final touches to the design. We have already mentioned this in the roadmap for several key reasons like preventing market dumping and token manipulation. It’s also to ensure the prices of tokens remain stable and cannot fall sharply.
Token vesting is convenient and safe option for new projects it releases their tokens in phases to the public to prevent prices of the circulating supply to fall sharply.
Investors looking to discover and support new projects will be able to see new and trending projects and purchase their tokens directly and sell them according to market conditions.
Common practices like selling-off initial token purchases by early investors can create an excessive supply of the tokens. It causes a massive reduction in the token price. Token vesting ensures such situations do not arise and boosts confidence with the early contributors of the project.
Depending on their requirements, they can lock a certain number of tokens for 1 or 2 years. It is to ensure the assets raised on decentralized exchanges for new projects on the BrightyPad ecosystem are used for their intended purpose.
Inflation
BrightyPad token holders will also earn rewards via inflation. With inflation, new tokens are added to circulation at a rate determined by the smart contract and those tokens are then distributed to holders as rewards.
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