Time-Locked Assets

Definition ∞ Time-locked assets are digital holdings that are programmatically restricted from being spent or transferred until a predefined future condition or time elapses. These assets are typically held in smart contracts or specific wallet addresses with embedded conditions that dictate their release, such as a particular block number being reached or a specific date passing. The mechanism ensures that the assets remain inaccessible for a set duration, providing security or enforcing vesting schedules. This feature is fundamental for various decentralized finance applications and token distribution models.
Context ∞ Time-locked assets are a prevalent concept in the cryptocurrency ecosystem, frequently appearing in news related to token vesting schedules for project teams, staking rewards, or liquidity provisions in decentralized exchanges. They play a crucial role in managing token supply, incentivizing long-term holding, and securing collateral within various blockchain protocols. The transparent and immutable nature of these locks on public ledgers provides verifiable assurance to market participants.