Coin Lockup

Definition ∞ Coin lockup refers to the process of temporarily restricting the transferability of digital assets for a specified period. This action is commonly undertaken for various purposes within cryptocurrency ecosystems, such as staking for network security, providing liquidity in decentralized finance (DeFi) protocols, or participating in governance. Locked coins are typically held in smart contracts or designated wallets, rendering them inaccessible to their owners until the lockup period concludes. This mechanism often contributes to network stability and value accrual.
Context ∞ News related to coin lockups often discusses new staking opportunities, changes in DeFi protocol economics, or token distribution schedules for new projects. A significant increase in locked value can indicate strong community participation and confidence in a project’s long-term viability. Conversely, large unlock events can sometimes lead to increased selling pressure and market volatility, which is a critical factor for investors to watch.