A locked contract refers to a smart contract that restricts the movement of funds for a specific period or until certain conditions are met. This mechanism is commonly used in token sales, initial coin offerings (ICOs), or decentralized finance (DeFi) projects to ensure that funds are securely held until specific milestones are achieved.For example, in a token sale, a project may lock investors’ funds to prevent early withdrawals, ensuring that the project has enough liquidity to proceed as planned. The contract can be programmed to release the funds automatically once defined criteria are satisfied, such as reaching a funding goal or completing a development phase.Locking contracts can also help increase investor confidence, as they minimize the risk of scams or mismanagement. By making funds inaccessible for a predetermined duration, investors can feel more secure knowing that their money is being used as intended. Overall, locked contracts serve as a protective measure to enhance trust and transparency in the management of funds within a project.