Token Unlock

Definition ∞ A token unlock signifies the release of previously restricted cryptocurrency tokens into active circulation. These events typically occur according to a predefined vesting schedule, freeing up tokens held by early investors, team members, or project treasuries. Token unlocks can significantly increase the circulating supply of an asset, potentially leading to selling pressure if recipients decide to liquidate their holdings. They are a common feature in the economic models of many digital assets.
Context ∞ Crypto news frequently highlights upcoming token unlocks as critical dates for market observers, due to their potential to influence an asset’s price and liquidity. Analysts often assess the magnitude of an unlock relative to the existing circulating supply to forecast its likely market impact. The management of token unlocks is a key aspect of a project’s tokenomics and long-term market strategy.