All lessons
Token vesting: size the unlock, then ask why
An unlock headline says two million tokens. Is that large relative to what?
Calculate an unlock against circulating supply and distinguish availability from selling.
Vesting makes an allocation releasable according to a schedule. A cliff can delay the first release; a linear schedule can release gradually. Actual contracts, amendments and beneficiary terms matter more than a copied calendar.
Separate maximum supply, total minted supply, circulating supply and tokens eligible for release. Data providers may classify circulation differently. A released token may move from a contract to a beneficiary without immediately reaching an exchange.
Compare the unlock with existing circulation and realistic market liquidity, then identify who receives it and any remaining restrictions. Availability is not a prediction that all recipients sell. Nor does an expected unlock guarantee a price fall.
Market capitalisation is price multiplied by the chosen circulating supply. Fully diluted valuation uses a stated broader supply basis, often maximum supply when defined. These are valuations at the marginal price, not cash balances or a measurement of money invested.
Let’s work through it
- Read the current issuer and contract schedule.
- Define each supply figure and the release recipient.
- Calculate relative size, then analyse liquidity and alternative behaviour.
Let’s use numbers · hypothetical example
A fictional token has 20 million circulating units, a 2 million release that all becomes circulating, and maximum supply 100 million. The release equals 10% of old circulation; new circulation is 22 million. At an unchanged price of 2, market cap rises mechanically from 40 to 44 million; that does not prove 4 million cash entered. Maximum-supply FDV is 200 million.
Easy mistakes to watch for
- Comparing an unlock only with maximum supply.
- Treating released tokens as guaranteed immediate sales.
- Calling a market-cap change a measured cash inflow.
Keep in mind
The example assumes the full release enters circulation. Real classification, burns, new issuance and schedule changes can alter the calculation.
Your turn
If only half the released amount becomes circulating, calculate new circulation and market cap at unchanged price 2. Write which assumption changed.
A quick check before we move on
The 2 million release is what share of old circulation?
- 2%
- 100%
- 10%
Check answer
10% 2 million divided by the previous 20 million circulating units equals 0.10, or 10%.
Sources and further reading
- docs.openzeppelin.com/contracts/5.x/api/finance
- www.coinbase.com/learn/crypto-basics/what-is-market-cap
Content reviewed: 29 October 2026
Educational material with hypothetical examples. Trading can cause substantial losses. A course, pattern, stop order or past result cannot guarantee a profit or limit every loss. Practise in simulation and check current rules and product terms in your jurisdiction.