Token unlock and vesting

Vesting is a schedule that releases tokens gradually to team members, early investors and advisers rather than all at once. A token unlock is the moment when some of those locked tokens become transferable.

A typical schedule might include a "cliff" of one year with nothing released, followed by monthly or quarterly unlocks spread over two to four years. The aim is to align insiders with the project's long-term success and stop them selling everything immediately after launch.

Unlocks matter to investors because they increase circulating supply. If recipients sell, the extra supply can push prices down, and large unlocks are often watched closely. Data sites such as Token Unlocks track upcoming events. Before buying a token, check how much of the supply is still locked, who holds it and when it unlocks. An unlock is not automatically bearish; it depends on demand and on whether holders actually sell.