Library · Crypto, word by word · Tokens and supply
What is a token unlock?
A token unlock is the scheduled release of tokens that were locked or vesting, often those reserved for a project's team, early backers or treasury. Once unlocked, the holders can sell or move them, and the circulating supply grows.
What it means for you
An unlock can put a large number of tokens in new sellers' hands on a known date. A project's disclosures say how much of the supply is subject to vesting or lock-ups; compare the next unlock with the current circulating supply to see how much it could add.
How it works
Tokens reserved for a team, early backers or a treasury are often held under vesting or lock-up terms and released on a schedule. The SEC lists whether any portion of supply is subject to vesting or lock-ups, and what is reserved for a treasury or particular participants, among the supply facts an offering is expected to disclose. Until release, those units are not free to trade and so are left out of circulating supply; at release they can be moved or sold, and circulating supply rises with no new minting.
An example
Say 20 million units circulate and 5 million unlock for early backers on a set date. Circulating supply rises 25% that day. Whether any are sold is up to the holders; the unlock only makes selling possible.
Source: SEC: Statement on Offerings and Registrations of Securities in the Crypto Asset Markets · checked 4 October 2026
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Related words
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