Reading a token unlock schedule

When a token launches, usually only part of the total supply can be traded. The rest is locked and released over months or years to the team, investors, the treasury and community programmes. That release plan is the unlock schedule.

Key terms

• Total supply: every token that exists or will exist under the current rules.
• Circulating supply: tokens that can be traded today.
• Fully diluted valuation (FDV): price multiplied by total supply, which shows what the market would be worth if every token were unlocked.
• Cliff: a period during which an allocation releases nothing at all.
• Linear vesting: after the cliff, tokens release in equal amounts, often monthly or block by block.

Why unlocks matter

Each unlock increases the number of tokens that can be sold. If demand does not grow at the same pace, the extra supply can put pressure on the price. The size of an unlock relative to circulating supply matters more than its dollar value: an unlock equal to 2% of circulating supply is very different from one equal to 40%.

Who receives the tokens

Look at who the recipients are. Early investors who bought at a low price may be more likely to sell than a community treasury that releases tokens through governance votes. Team allocations with long vesting periods signal a longer commitment.

Where to find the schedule

Start with the project's official documentation or tokenomics page, then compare it with on-chain data. Vesting contracts are public, so schedules can be checked. Be cautious when a project cannot point to one.

Key takeaways

• Compare circulating supply with total supply and FDV.
• Measure unlocks against circulating supply, not just in dollars.
• Check who receives each tranche and when.