Team tokens are the portion of a project's total supply allocated to founders, core developers, and employees. These tokens are compensation for building and maintaining the project, and they typically represent 10-20% of the total supply.
Team tokens almost always have the longest and most restrictive vesting schedules, commonly featuring a 1-year cliff followed by 3-4 years of linear vesting. These schedules are designed to align the team's financial incentives with the project's long-term success.
The vesting status of team tokens is closely watched by the market. When large portions of team tokens unlock, there is often concern about potential selling. Transparent communication about team token management helps maintain investor confidence.