What Are Token Unlocks and How Do They Affect Price?

Why tokens are locked

When a project launches a token, large shares usually go to the team, early investors, a foundation and an ecosystem fund. To stop insiders selling at launch, these allocations are locked and released over time through vesting.

A typical schedule: nothing for the first 12 months (the cliff), then equal monthly releases for two to four years.

What happens at an unlock

On the unlock date, tokens become transferable. That does not mean they are sold, but it means they can be. Markets react to the possibility.

Judging the impact

Size relative to circulating supply

An unlock of 1% of circulating supply is usually absorbed easily. One of 10% or more can weigh on the price for weeks. Our unlock calendar shows each unlock as a share of circulating supply.

Size relative to trading volume

Compare the unlock's dollar value with daily trading volume. If the unlock equals several days of total volume, selling it without moving the price is hard.

Who receives it

• Investors who bought far below today's price have the most reason to take profit.
• Team members may sell some to cover taxes and costs.
• Ecosystem and community allocations are often distributed gradually as rewards, so they reach the market more slowly.

Has it been priced in?

Schedules are public. Large, well-known unlocks are often anticipated, and prices sometimes fall before the date and stabilise after.

Where to find the schedule

Projects publish token schedules in their documentation or whitepaper. We list upcoming unlocks we have verified, with a link to the source, on the token unlock calendar, and the next unlock appears on each coin's page.