Restricted Stock Units

Restricted stock units are a form of equity compensation that grants employees or stakeholders the right to receive shares of a company after a specific vesting period. These units are not immediately available for sale, which effectively removes them from the tradable float.

In the blockchain space, similar concepts are applied through token grants to core developers or early contributors. These assets are typically held in smart contracts or escrow accounts.

Because they cannot be traded, they do not contribute to the immediate market supply. However, once the vesting conditions are met, these units become liquid, potentially increasing the circulating supply.

This transition can impact the price if the recipients decide to sell their holdings. Understanding the vesting timeline of these units is crucial for fundamental analysis.

It helps investors anticipate future supply shocks. These units align the incentives of the stakeholders with the long-term success of the protocol.