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Locked Tokens

Definition

Locked Tokens are digital assets that are restricted from being traded, transferred, or accessed for a specific period or until certain conditions are met. This mechanism is commonly employed in initial coin offerings (ICOs), token generation events (TGEs), and vesting schedules for project team members or early investors. The purpose is typically to prevent immediate sell-offs, thereby stabilizing token prices and aligning long-term incentives. Their status is often a key metric for assessing project development progress and potential future market supply.