Locked Token Supply
Pronunciation: LOKT TOH-kun suh-PLY
Also known as: Token Lockup Supply, Vested Token Supply
Definition
Locked token supply is the amount of issued tokens that cannot be freely transferred or sold until specified conditions are met. Tokens may be locked by vesting contracts, staking rules, governance commitments, escrow, protocol restrictions, or legal agreements. Locked supply is usually excluded from immediate market float but can become circulating later, so unlock schedules are important for dilution, liquidity, governance, and price-risk analysis.
Overview
Meaning and scope
Locked token supply is the amount of issued tokens that cannot be freely transferred or sold until specified conditions are met. Tokens may be locked by vesting contracts, staking rules, governance commitments, escrow, protocol restrictions, or legal agreements. Locked supply is usually excluded from immediate market float but can become circulating later, so unlock schedules are important for dilution, liquidity, governance, and price-risk analysis.
Mechanism and operation
Locked token supply captures tokens that exist on-chain or in the issuer’s records but are temporarily unavailable for ordinary transfer. The restriction may be enforced directly by a smart contract, by custody controls, or contractually with an investor or contributor. Technical locks are easier to verify on-chain, while contractual lockups may depend on off-chain compliance and can be harder for market participants to confirm. Common categories include team vesting, investor lockups, staking deposits, governance escrow, bridge collateral, protocol safety modules, and tokens reserved for future incentives. Staked tokens may earn rewards and retain governance rights, while unvested employee allocations may be forfeitable.
Practical payment example
A project reports total token supply while a portion remains subject to vesting locks. Treasury models circulating and locked balances separately when estimating future liquidity.
Operational checks
Unlock schedules can increase circulating supply even when total supply remains unchanged. Analysts should track cliffs, linear vesting, discretionary releases, early-unlock rights, and whether recipients can hedge exposure before transfer becomes possible. Locked supply should be distinguished from treasury supply, burned supply, and tokens lost due to inaccessible keys.
Distinctions and limits
Bridge escrow backs tokens elsewhere and should not be treated as an ordinary dormant allocation. A nominal lock does not eliminate selling pressure if tokens can be borrowed against, wrapped, or represented through derivative claims.
Related reading
Related definitions: treasury supply, initial token supply.
Example
A project reports total token supply while a portion remains subject to vesting locks. Treasury models circulating and locked balances separately when estimating future liquidity.
Comparison
Bridge escrow backs tokens elsewhere and should not be treated as an ordinary dormant allocation. A nominal lock does not eliminate selling pressure if tokens can be borrowed against, wrapped, or represented through derivative claims.
Key Takeaway
Locked token supply is not current market float, but its release schedule can materially change circulation, governance, and selling pressure.
Sources
- ERC-20: Token Standard — Ethereum Improvement Proposals (2026-08-02)
- Tokenization of Financial Assets — International Organization of Securities Commissions (2026-08-02)
- Taxonomy of Legal Issues Related to the Digital Economy — UNCITRAL (2026-08-02)