Unvested Supply

Definition ∞ Unvested supply refers to a portion of a cryptocurrency’s total token allocation that is not yet freely tradable or transferable. These tokens are typically held by project founders, team members, early investors, or advisors and are subject to a vesting schedule. A vesting schedule dictates that tokens become accessible gradually over a set period, often to align long-term interests and prevent immediate market dumps. This controlled release mechanism aims to promote project stability and responsible token distribution.
Context ∞ Unvested supply is a crucial metric analyzed in cryptocurrency news, particularly when evaluating the tokenomics and potential market dynamics of new projects. Significant unlocks of unvested tokens can lead to increased selling pressure and price volatility, making vesting schedules a key factor for investors. Transparency around these schedules and their impact on circulating supply are regularly discussed in reports on token valuations and project health.