Asset Locking

Definition ∞ Asset locking involves making digital assets temporarily inaccessible or non-transferable within a blockchain system. This action is typically performed to secure a network, provide liquidity, or participate in governance. The assets remain locked for a predetermined duration or until specific conditions are satisfied. This mechanism underpins various decentralized finance activities.
Context ∞ News regarding asset locking often pertains to staking mechanisms, liquidity pools, or initial coin offerings with vesting schedules. The duration and conditions of asset locks are critical factors influencing market supply and participant commitment. Regulatory discussions sometimes address the implications of asset locking on market liquidity and investor protection.