Definition
A token unlock makes previously restricted tokens available under a release schedule or condition. It is often connected with vesting for contributors or investors. Unlocking is not necessarily the same as minting: the tokens may have existed for some time before becoming transferable.
How It Works
Releases can occur at a single cliff, in periodic installments or continuously over a defined interval. The recipient may need to submit a claim, or the contract may automatically update transfer eligibility. Project disclosures and contract rules determine which amount is actually released and to whom.
Key Considerations
An unlock can expand the supply available for trading, but it does not prove that recipients will immediately sell. Market impact depends on size, expectations, liquidity and recipient behavior. Published calendars can contain estimates or miss conditional releases. Distinguish total unlocked tokens from circulating-supply methodology and from completed exchange deposits. A release schedule alone is insufficient to predict a price move or the direction of a market.