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What Is the Impact of a Token Lock-up Period on Market Supply?

A token lock-up restricts the circulating supply, which, assuming constant or increasing demand, can help maintain or increase the token's price. When locked tokens are released, the circulating supply increases, which can exert downward pressure on the price if demand does not keep pace.

Lock-ups are crucial for managing supply-side economics.

What Is a “Lock-up Period” and Why Is It Used in Token Distribution?
How Does a Cliff Period Differ from the Overall Vesting Period?
How Does the Release of Vested Tokens Affect the Fully Diluted Valuation (FDV)?
How Does the Concept of ‘Lock-up’ Differ from a Vesting Schedule?