Cryptocurrency vesting: how token unlocks shape price and volatility
Every crypto project has its own tokenomics — an economic model that governs the issuance, supply, and distribution of the cryptocurrency. One of the rules of tokenomics is cryptocurrency vesting.
What is vesting?
Vesting is the process of gradually unlocking tokens and distributing them to investors over a specified period of time. The vesting mechanism is created with at least two goals:
- Incentivizing investors to hold the asset long-term
- Reducing selling pressure caused by large holders
Vesting includes a so-called unlock period — the release of tokens according to the tokenomics rules and the schedule of a specific crypto project.
As a rule, token unlock schedules are published by crypto projects already at the stage of investment rounds to keep investors informed. However, there are cases when a project team publishes the unlock schedule only after token issuance or even changes it.
For example, in February 2024, the Starknet team revised the vesting schedule for its STRK token and unlocked assets in smaller portions, which led to an immediate 15% price increase.
It is believed that vesting can significantly influence not only the price of individual cryptocurrencies but also their volatility* and the general dynamics of the crypto market. This is why investors need to monitor token unlock schedules.
* Volatility is an indicator that reflects how quickly the price of an asset can change over a specific period of time. Cryptocurrencies are highly volatile assets because their value can rise or fall by tens of percent within hours or even minutes.
Keyrock analysts conducted research and found that in 90% of cases, token unlocks — regardless of scale — lead to cryptocurrency price declines that begin as early as 30 days before the event.
For example, according to Cryptorank, by the end of 2025, tokens worth more than $6 billion will be unlocked — about 0.2% of the total market capitalization of the crypto sector. Meanwhile, in Q4 2025, the crypto market is showing a downward trend: since early October, the total market capitalization has fallen by 20% — from $3.9 trillion to $3.12 trillion.
Types of cryptocurrency vesting
Depending on the tokenomics of the crypto project, vesting mechanisms may vary. For example, while some projects offer quick unlocks, others vest over more extended periods that may last several years.
Linear or calendar vesting
With linear vesting, unlocks occur regularly and usually at equal intervals — daily, monthly, or quarterly, depending on the project's tokenomics.
A small portion of tokens (e.g., 20–25%) may be unlocked immediately, while the rest is released in equal portions over several years. This calendar vesting mechanism is the most common among crypto projects.
Step (milestone-based) vesting
Unlike calendar vesting, step-based vesting usually involves fewer unlocks and often at different amounts. For example, the first 25% may be released after six months, another 25% after a year, and the remaining half after 18 months.
Depending on the project, additional conditions may be introduced. For example, the team may unlock tokens only after completing a particular milestone.
Cliff vesting
The name, "cliff," accurately reflects the essence of this method. Cliff vesting implies a long lock-up period after which a large batch of tokens is suddenly released into the market.
Reverse vesting
There is also a reverse vesting model where tokens can be confiscated as a penalty if an investor fails to meet project requirements. This model was used, for example, by the well-known Filecoin project.
The Filecoin team issued a special agreement for future holders of FIL tokens (Simple Agreement for Future Tokens, or SAFT). Under SAFT, team members received additional tokens over three years, and investors over six. Miners received only 25% of block rewards immediately, while the remaining 75% were unlocked gradually over 180 days.
Hybrid and other vesting models
Hybrid vesting models may combine different vesting types, such as cliff vesting with linear or step-based vesting.
There are also vesting mechanisms without a fixed schedule but based on triggers — such as key stages of the project or specific achievements. In this case, tokens may be distributed manually through a smart contract rather than automatically.
Where and how to check token vesting schedules?
Tracking token unlocks is essential for investors, as even small unlocks can affect the token price. This information is publicly available.
The most reliable option is to monitor announcements from the projects themselves through official channels:
- Project blog
- Twitter profiles
- Telegram and Discord groups
Since vesting decisions may occur off-schedule following certain events, information will always appear first in official sources.
Standard token unlock schedules can also be tracked through specialized aggregators such as:
- Cryptorank Token Unlocks
- Tokenomist
- CoinMarketCap
Using specialized platforms, you can track not only the vesting schedule and number of unlocked tokens but also:
- The token amount in USD equivalent at the current price
- Information on who receives the unlocked tokens
- A list of projects with upcoming cliff unlocks
- Data on token supply
- The total number of tokens scheduled to unlock per day or any other period