What are Lockups?
Lockups are a way to apply transfer restrictions to tokens without interfering with the token grant ownership (or vesting).
A token that is 'unlocked' is considered to be freely transferrable and tradeable. Token grants may have both vesting and lockup mechanics attached to the underlying asset (sometimes simultaneously). Lockups are commonly applied to protect token liquidity and follow securities regulations.
Vesting implies ownership, a lockup implies transferability.
Types of Lockups
Similar to vesting, there are two types of lockups that can be applied to token grants:
Time based lockups. The grant unlocks additional tokens according to a fixed, time-based schedule. This can sometimes occur after a cliff date, which is the earliest date the first set of tokens is considered unlocked (usually one year).
Milestone based lockups. This type of unlock can generally include custom triggers and situation-specific events. For instance, a portion of the tokens might not unlock until the token is listed on a publicly trading exchange.
Create a Lockup Schedule
Lockup schedules can be created and edited under 'Company -> Lockup Schedules' on the left side navigation menu.
Select the Actions dropdown in the upper right hand corner to create a new Lockup Schedule.
Name your Lockup Schedule, lockup type (time vs milestone) and cliff details. Once populated, click frequency, cap unlock if applicable, and "Add Lockup Schedule". Congratulations! You've created a Lockup Schedule.
Edit a Lockup Schedule
Need to make an edit to a lockup schedule? Select the Lockup Schedule (hyperlinked in green) to make edits.