Lockup

DeFi

Period during which tokens cannot be transferred.

A lockup prevents transfers for a period to align incentives. Schedules may include cliffs and then steady unlocks. Always verify the schedule and contract terms.

Frequently asked questions

  • Why use lockups?
    To align incentives and prevent immediate selling after distributions or sales.
  • Can lockups be changed?
    Only if the contract or agreement allows it. Changes should be transparent and justified.
  • How do I verify a lockup?
    Check token contracts for timelocks and vesting schedules, or review signed agreements.