How Do Investor Lock-Ups Differ from Team Lock-Ups?

Investor lock-ups are restrictions on early investors' ability to sell tokens, often shorter than team lock-ups (e.g. 6-12 months).

Team lock-ups are generally much longer (1-2 year cliff plus 2-3 year vesting) to ensure long-term commitment. Both prevent immediate market dumps, but the team lock-up is a stronger signal of project commitment and risk alignment.

How Does a ‘Cliff’ Mechanism Work in a Vesting Schedule?
How Do Vesting Schedules for Team Tokens Compare to Those for Early Investors?
What Is a “Cliff” in a Token Vesting Schedule?
How Does a Cliff Period Differ from the Overall Vesting Period?
How Does a Vesting Cliff Differ from a Linear Vesting Schedule?
How Does a project’S Treasury Fund Vesting Schedule Differ from the Team’s?
How Does a “Cliff” Period Affect a Token Vesting Schedule?
What Is a Cliff Period in a Vesting Schedule?

Glossar

Team Member Incentives

Incentive ⎊ Team member incentives are the structured compensation and non-monetary rewards designed to attract, motivate, and retain high-caliber talent essential for developing and operating complex crypto derivatives platforms.

Lock-Up Strategy Optimization

Constraint ⎊ Lock-up strategy optimization involves the quantitative determination of the most advantageous time horizon and asset quantity to restrict from trading, typically following a token generation event or a venture capital investment.

Centralized Team Risk

Governance ⎊ Centralized Team Risk defines the operational and strategic hazard arising from a small, core group retaining disproportionate control over a cryptocurrency project, exchange, or derivatives protocol.

Time Lock Bypass

Vulnerability ⎊ A time lock bypass is a critical vulnerability in a smart contract that allows an attacker to circumvent a time-based restriction on asset withdrawal or function execution.

Vesting for Team Members

Vesting ⎊ Vesting for team members involves distributing token allocations over a specific time frame, rather than immediately at launch.

Cryptocurrency Investor Protection

Regulation ⎊ Cryptocurrency investor protection encompasses the legal and procedural safeguards designed to shield market participants from fraud, manipulation, and systemic failure within the volatile digital asset space.

Tokenomics Fundamentals

Supply ⎊ The fundamental supply schedule, detailing issuance rate and total cap, is a primary determinant of long-term asset valuation and derivative pricing stability.

Team Demotivation

Cause ⎊ Team demotivation is frequently rooted in a sharp decline in the project's token value, which directly impacts the financial incentive structure for developers and core contributors holding vested tokens.

Technology Lock In

Lockin ⎊ Technology lock-in in the context of cryptocurrency, options trading, and financial derivatives describes a situation where an entity becomes dependent on a specific technology or platform due to high switching costs.

Absent Team Information

Risk ⎊ Absent Team Information fundamentally elevates the counterparty and execution risk associated with crypto derivatives and underlying assets.