Vesting Schedule
A vesting schedule sets when locked tokens — typically held by founders, team members and early investors — become available. A cliff is an initial period with no releases, after which tokens unlock gradually. Large upcoming unlocks can add selling pressure.
A vesting schedule sets when locked tokens held by teams, investors and others become free to sell. It usually starts with a cliff and then releases tokens in regular steps. Traders watch unlock dates because a wave of newly sellable tokens can weigh on price.
- Category
- Cryptocurrency and Blockchain
- Reading time
- 4 min
- Also called
- Token vesting, Token unlock schedule, Lock-up schedule
- Updated
Vesting in plain words
Vesting locks tokens for a set time before their owners can fully use or move them.1
It stops early insiders from dumping their tokens and walking away from the project.1
The schedule is the timetable that says how much unlocks and when.
How a typical vesting schedule works
Allocate tokens
Start with the token's supply design: allocation, vesting period and emission.2
Lock at launch
Team and investor tokens start locked.
Wait for the cliff
Find the cliff — the waiting period before any release — and the regular releases after it; schedules can change.1
Release in steps
A common pattern is a one-year cliff followed by equal monthly releases.1
Track circulating supply
Unlocked tokens move from locked to circulating supply.
Finish vesting
Once all tokens are released, the schedule no longer adds supply.
Worked examples
Example 1 — Cliff then monthly
6M unlocked by month 18A hypothetical team holds 24 million tokens with a 1-year cliff then 24 monthly releases.
| Monthly unlock | 24M ÷ 24 = 1M tokens |
| Unlocked after 18 months | 6 × 1M = 6M tokens |
This is the classic set-up: a one-year cliff, then equal monthly releases.1
Example 2 — Unlock vs float
25% more supplyA hypothetical token has 40 million circulating and an unlock of 10 million due next week.
| New circulating | 40M + 10M = 50M |
| Supply increase | 10 ÷ 40 = 25% |
Unlock dates matter because vesting is what kept early holders from selling — and that restraint ends then.1
Example 3 — Dilution if demand is flat
−20% if demand is flatBefore the unlock the hypothetical market cap is $80M at $2; demand stays flat after 10 million more tokens unlock.
| Tokens after | 40M + 10M = 50M |
| Implied price | $80M ÷ 50M = $1.60 |
| Change | $2 → $1.60 = −20% |
Data sites list vesting tokens as not yet circulating or not yet issued.3
Cliff vs linear vesting
| Aspect | Cliff | Linear |
|---|---|---|
| How tokens release | Nothing, then a block | Steady small amounts |
| Price impact | Concentrated on one date | Spread over time |
| Common use | Start of team schedules | After the cliff |
| What traders watch | The cliff date | Monthly unlock size |
How traders use vesting data
Event planning
Unlock dates can bring Volatility.
Supply analysis
Unlocks raise circulating supply and affect Market Capitalisation.
Position timing
Some traders reduce Exposure ahead of large unlocks.
Due diligence
Vesting terms are part of Fundamental Analysis.
Advantages and disadvantages
Advantages
- Aligns teams with long-term success.
- Makes future supply more predictable.
- Reduces early dumping by insiders.
- Schedules are often published in advance.
Disadvantages
- Large unlocks can pressure price.
- Schedules can change.
- Not all lock-ups are visible on-chain.
- Unlocks may be priced in, making trades tricky.
Going deeper
Read as far as you need. Each level builds on the one before it.
Why projects use vesting
Beginner
Vesting is there to keep early participants from selling quickly and leaving.1
Trends in vesting terms
Intermediate
Vesting periods and cliffs have generally grown longer over the past few years.2 Longer schedules spread selling pressure over more time.
What regulators ask for
Advanced
Regulators recommend disclosing how concentrated token ownership is and any lock-ups for insiders.4 Disclosure rules differ by country, so the detail available varies.
Common mistakes
Ignoring the unlock calendar
Large unlocks are often known weeks ahead.
Assuming unlocks always dump
Holders may not sell right away.
Trusting old schedules
Terms are subject to change.
Looking only at circulating supply
Locked tokens are future supply.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- Vesting locks tokens for a set period.
- Schedules usually start with a cliff.
- Releases then come in regular steps.
- Unlocks add to circulating supply.
- Check unlock dates before trading.
Frequently asked questions
Do token unlocks always lower the price?
Where can I find vesting schedules?
Can a vesting schedule change?
Further learning
- Market Capitalisation
How unlocks change supply-based value.
- Volatility
Price swings around unlock dates.
- Fundamental Analysis
Reading tokenomics.
- Position Sizing
Sizing trades around events.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- Coinbase Learn. What does vesting mean in crypto? (opens in a new tab) Checked .
- Binance Research. Tokenomics Deep Dive (opens in a new tab) Checked .
- DefiLlama Docs. What to include as TVL? (opens in a new tab) Checked .
- IOSCO. Policy Recommendations for Crypto and Digital Asset Markets (FR11/2023) (opens in a new tab) Checked .
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.