No Lockup Period

Definition ∞ A no lockup period is a condition in digital asset protocols or financial products where users can withdraw their staked or deposited assets at any time. This occurs without incurring penalties or waiting for a predetermined duration. It offers participants immediate liquidity and flexibility with their holdings. This contrasts with traditional staking models that often require fixed terms.
Context ∞ The concept of no lockup periods is gaining traction in decentralized finance as protocols seek to attract users by minimizing capital commitment restrictions. While offering greater liquidity, the absence of lockup periods can also influence network stability and tokenomics. This leads to ongoing discussions about balancing flexibility with protocol security.