How Do Lock-up Agreements Relate to Token Vesting Schedules?

Lock-up agreements are legal or smart-contractual restrictions that prevent early investors, team members, or advisors from selling their tokens for a specified period, often coinciding with the vesting schedule. They are a component of the overall vesting process.

While vesting dictates when tokens are earned, the lock-up dictates when they can be sold. The expiration of a lock-up period often marks the cliff and can trigger a significant market event.