Background

Crypto fundraising has come a long way since the wild ICO days of 2017-2018, when projects raised huge sums with few rules, often ending in scams and big losses for investors. Models like IEOs and IDOs introduced additional checks through exchanges, but they still prioritized quick cash over long-term health. By 2022, tougher regulations—like SEC crackdowns on unregistered tokens—pushed everyone toward safer setups. This led to the emergence of SAFTs (simple agreements for future tokens) and vesting schedules, where teams, advisors, and early backers lock up their tokens for periods ranging from 6 months to 4 years. These help keep people focused on building the project instead of quick flips, and they've become standard in most token plans.

Now, vesting is everywhere in crypto. Projects use simple schedules—like steady monthly releases or big "cliffs" after key milestones—to drip out tokens over time. This happens through smart contracts or secure wallets, keeping the supply controlled and rewarding real contributors. Early investors sign SAFTs that turn into tokens later. Tools from companies like TokenSoft make it easy to set up. It's helped a lot: vesting has cut down on post-launch price crashes in many projects.

But vesting isn't perfect yet. The biggest issue is lack of liquidity: teams and investors are stuck waiting months or years to cash out, which starves projects of funds and forces backers to miss other opportunities—often leading to shady off-market deals at big discounts. Compliance headaches come from different rules in each country, plus the tech hassle of proving SAFTs with oracles, which splits up trading pools. Low engagement is another problem: side markets don't let people bet early on future gains, so speculators take over while true fans get left out, and delays in releases frustrate everyone. In the end, a lot of locked tokens just sit unused, wasting potential.LVT（Liquid Vesting Token） Vault fixes these vesting headaches by offering a simple, rule-friendly way to add liquidity to locked tokens.