Glossary · T
Token Unlock
The scheduled release of previously locked or vested tokens into the circulating supply. Team allocations, investor portions, and ecosystem reserves are typically locked at token launch and unlock on a schedule (e.g., 10% immediately, then 2% per month for 4 years). Token unlock events can create significant selling pressure as insiders become able to sell. Resources like Token Unlocks (tokenunlocks.app) and Vesting Schedule track upcoming unlock events.
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How Token Unlock works in practice
A token unlock is a scheduled release of previously locked supply to investors, team or treasury. Schedules are published in advance, so the event is known — what is not known is how much of it reaches the market.
Worked example
A protocol unlocks 5% of supply to early investors on a set date. If those investors bought at a fraction of the current price, a meaningful share may be sold. The price often weakens ahead of the date as traders position for it.
Figures are illustrative and chosen to be checkable, not live market data.
The mistake that costs people money
Assuming a cliff unlock is priced in. Large unlocks into thin liquidity move prices regardless of how well telegraphed they were. Check the vesting schedule before taking a position, not after.
Token Unlock: common questions
- What is Token Unlock?
- The scheduled release of previously locked or vested tokens into the circulating supply. Team allocations, investor portions, and ecosystem reserves are typically locked at token launch and unlock on a schedule (e.g., 10% immediately, then 2% per month for 4 years). Token unlock events can create significant selling pressure as insiders become able to sell. Resources like Token Unlocks (tokenunlocks.app) and Vesting Schedule track upcoming unlock events.
- How does Token Unlock work in practice?
- A token unlock is a scheduled release of previously locked supply to investors, team or treasury. Schedules are published in advance, so the event is known — what is not known is how much of it reaches the market.
- Can you give an example of Token Unlock?
- A protocol unlocks 5% of supply to early investors on a set date. If those investors bought at a fraction of the current price, a meaningful share may be sold. The price often weakens ahead of the date as traders position for it.
- What do people get wrong about Token Unlock?
- Assuming a cliff unlock is priced in. Large unlocks into thin liquidity move prices regardless of how well telegraphed they were. Check the vesting schedule before taking a position, not after.