Token Locking
In short: Token locking, also called a token lock-up, is a period of time during which certain cryptocurrencies cannot be traded or transferred.
Token locking, also called a token lock-up, is a period of time during which certain cryptocurrencies cannot be traded or transferred. The restriction is usually enforced by a smart contract or by the rules of the platform holding the tokens.
Why it matters
Lock-ups appear in several places. Tokens allocated to a team or early investors are often locked after a token sale and then released gradually, a process known as vesting. Liquidity providers may lock their pool tokens to show they will not pull liquidity suddenly, and some staking systems hold tokens for a waiting period before they can be withdrawn. When a large lock-up ends, the number of tokens that can be traded rises, which is why many holders follow unlock schedules.
Example
A project locks its team's tokens in a vesting contract. For the first year nothing can be claimed; after that, a fixed portion becomes available each month. Anyone can read the contract on a block explorer to confirm the schedule. A lock that is only promised in a blog post, rather than enforced on-chain, offers much weaker assurance.