What Is Token Vesting? Cliffs, Unlocks and Why They Move Prices

Token vesting is a schedule that releases tokens to their owners gradually instead of all at once. Teams, investors and sometimes airdrop recipients receive their allocation over months or years. Until tokens vest, the holder cannot sell them. Vesting matters to every trader and farmer, because locked tokens become sell pressure later. So understanding the schedule tells you when supply will hit the market. The three key terms also appear in our crypto airdrop glossary : vesting, cliff and unlock. Why Projects Use Vesting Imagine a launch without any locks. Founders and early investors hold huge allocations at tiny prices.