Token Lockup

A token lock-up (also known as a vesting period) is a period of time after a token sale when owners of tokens in a cryptocurrency project are generally not allowed to sell their tokens. Initiatives can avoid liquidity problems throughout the lock-up phase as they develop their support base for new project.

For instance, during the manufacturing and distribution of its tokens, the FLOW token generated 1.25 billion FLOW. The network continued to function while the tokens were locked up for about a year, maintaining their value. The lock-up time and transfer restrictions were established with the token generation, putting pre-launch investors, team members, and community members on an even playing field.