What are vesting and token unlocks?

Vesting describes earning a token allocation as time passes or specified conditions are met. A token unlock removes a transfer restriction. Projects sometimes use the labels loosely, but earning an entitlement, becoming able to transfer it and receiving tokens in a wallet can happen on different dates.

In vesting and lockup schedules, a cliff is an initial waiting period before vesting begins. A linear schedule spreads entitlement across regular intervals. The terms determine whether accumulated entitlement vests at the cliff; reaching it does not necessarily release the entire grant.

Example: a 1,200-token grant

Suppose a hypothetical grant vests 1,200 tokens over 12 months. A three-month cliff releases entitlement to 300 tokens at the end of month three, followed by 100 each month for nine months. By the end of month six, 600 tokens have vested. If a separate transfer lock lasts until month six, the 300 tokens earned at month three could not yet be transferred then.

The example separates entitlement from a spendable balance. Read the vesting, unlock and delivery dates independently. A recipient may keep unlocked tokens; the schedule alone is not evidence of a sale or a price decline.

Our tokenomics review guide explains how to examine the recipient group, release amount and authority to change a schedule alongside supply figures.