Locked rewards refer to cryptocurrency rewards or assets that are restricted from being accessed or utilized for a specified period. This mechanism is often employed in various platforms, including staking, liquidity provision, or incentive programs, to encourage long-term commitment from participants.When users receive locked rewards, they cannot sell or transfer these assets until the lock-in period expires. This approach helps stabilize the token’s value by reducing sell pressure, as participants are incentivized to hold onto their rewards instead of liquidating them immediately.Locked rewards can also promote community engagement by aligning the interests of token holders and the wider ecosystem. As users remain invested longer, the potential for price appreciation and the overall health of the project may improve. Many projects will outline the specific terms surrounding lock periods, including duration and conditions for release, which can vary widely depending on the individual project’s goals.