How Does the Concept of ‘Lock-up’ Differ from a Vesting Schedule?

A lock-up is a temporary restriction that prevents the sale or transfer of a large quantity of tokens, typically for a fixed period after a public sale or exchange listing. Its primary goal is to prevent a sudden market dump that could crash the price.

A vesting schedule, conversely, is a gradual release mechanism tied to an individual's tenure or performance, designed to incentivize long-term commitment. A lock-up is a market stability measure; vesting is an incentive alignment measure.