Glossary

Token unlock

A token unlock is the release of previously locked tokens, which makes them available to trade and adds to the circulating supply.

A token unlock is the moment when locked tokens become free to move. Projects lock tokens for team members, early investors and the treasury. A vesting schedule sets when each part is released. Releases happen on fixed dates or in small steps, for example daily or monthly.

An unlock raises the circulating supply. Large unlocks, especially a cliff unlock where a big block opens at once, can add much new supply to the market. Calendars show the amount, the share of the circulating supply and the receiving group when the project discloses it.

An unlock does not mean that the recipients will sell. Holders may keep tokens, stake them or have agreements that limit sales. The market may also price an unlock in advance, because the schedule is public. Treat an unlock as a supply event on the calendar, and not as a prediction of price.