What Is Token Unlock?

Token Unlock refers to the scheduled release of tokens that were previously restricted or locked. In airdrop farming, this is when you can actually access and sell (or hold) the tokens you earned. Protocols lock tokens using vesting schedules to prevent immediate price crashes and align long-term incentives.

Why Token Unlocks Matter for Airdrop Farmers

When you farm an airdrop, you don't always get tokens immediately. Arbitrum's initial airdrop locked tokens with a vesting schedule. Jito's rewards often come with unlock periods. Token Unlocks determine your actual exit point—knowing when unlocks happen lets you plan whether to hold or sell. A major unlock date can also trigger price dumps as recipients liquidate simultaneously, making it a critical market timing signal.

How Unlocks Work

Unlocks typically follow a cliff-period (no tokens released for X months) plus linear vesting (tokens unlock gradually). For example, Hyperliquid airdrop recipients might receive 10% at claim, then remaining 90% unlocking monthly over 9 months. Some protocols use epoch-based unlocks (monthly snapshots) rather than continuous vesting. Smart airdrop farmers track unlock calendars obsessively because major unlock events can cause 20-50% price swings.

Practical Impact on Your Farming Strategy

If you're stacking points in a points-program expecting an airdrop, research the likely vesting terms. If unlock happens in tranches, you can plan staged exits. If everything unlocks at once, expect volatility. Check the protocol's tokenomics page or whitepaper for unlock schedules before committing farming capital. Some farmers intentionally farm protocols with longer cliffs because less competition means higher yields while waiting.