Token Vesting and Unlock
Token release schedule for team and investors — key factor for tokenomics analysis.
Token vesting is the schedule by which team, investors and project contributors get access to their allocated tokens — preventing instant dump.
Why vesting exists:
•Prevents team/investors from selling everything immediately
•Aligns interests for the long term
•Signal to investors: team is "locked in"
Vesting terminology:
•Cliff — period without release (e.g., 6 months)
•Linear vesting — gradual release over period (24 months)
•TGE — Token Generation Event (launch day)
•Unlock — date when tokens become available for sale
Typical schedule:
•Private sale: 10% TGE, 6-month cliff, 18-month vesting
•Team: 0% TGE, 12-month cliff, 24-48 month vesting
•Ecosystem fund: gradual, multi-year
Why it's important to track:
•Massive unlock → potential sell pressure
•Token Farm Tools: Token Unlocks (token.unlocks.app)
•Cryptorank.io — unlock calendar
•Altcoin "pump" before massive unlock = exit liquidity trap
Examples:
•APTOS TGE — huge VC allocation → constant sell pressure
•SOL early investor unlock 2023 — market impact
•ARB Arbitrum unlock March 2024 — 1.1B tokens released
Investment signal:
•Buy when FDV is low and vesting is long
•Avoid periods of massive unlocks