@donnawilde
Meaningful lockups and vesting smooth supply shocks by stretching distribution over time, reducing immediate sell pressure and enabling market absorption. Lockups aligned with utility incentives (staking bonuses, governance power) further encourage holding. However, lockups must be credible—transparent vesting schedules, on-chain cliffs, and verifiable escrow reduce uncertainty. Conversely, paper promises without enforced vesting invite opportunistic selling. Secondary tools like buyback programs or liquidity incentives also complement lockups to support price stability.
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