Holds
Renouncing a free agent removes his cap hold from the team's books, instantly creating room. But it also surrenders his Bird rights, meaning the team can no longer exceed the cap to re-sign him.
It's the classic cap-management trade-off: keep holds to retain your own players, or renounce them to chase outside free agents with cap space.
See it live: pick any team and tap the numbers on its cap sheet.