Distribution of tokens is a balance between rewarding early investors, incentivizing the core team and founders, and ensuring the long-term sustainability of the ecosystem. $RCADE is Arcade Galaxy's governance token with a fixed supply of 500 million.
The main risk for long-term investors is that early holders of the token will sell (‘dump’) too quickly in the project lifecycle, causing the price to crash. Hence, vesting is important for early investors and insiders.
Tokens are distributed in increments (=Cliffs) over a set period, usually in equal amounts (=Linear). i.e. An allocation of 10m tokens on a vesting schedule of 1y Cliff + 4y Linear, would distribute 2.5m at the end of each year for 4 years.