Definition ∞ A Long-Term Asset Lock refers to the voluntary commitment of digital assets to a smart contract or protocol for an extended and predetermined duration. During this period, the assets are inaccessible for trading or transfer. This action often supports network security, governance, or yield generation.
Context ∞ News reports frequently cover long-term asset locks as an indicator of strong holder conviction and reduced circulating supply in the digital asset market. This action can contribute to price stability by removing assets from immediate selling pressure. Analysts monitor these lockups to gauge investor sentiment and potential future supply shocks.