Crypto glossary
Cliff (vesting cliff)
A vesting cliff is the initial lock-up period in a vesting schedule during which no tokens are released, followed by a first lump-sum unlock.
Most team and investor allocations vest over several years, but they rarely start unlocking on day one. Instead, a cliff of six or twelve months is set first. Until the cliff date, the holder receives nothing; when it passes, a chunk that represents the elapsed period is released at once, and the rest then unlocks gradually, often monthly.
Cliffs exist to keep insiders committed and to stop them selling right after launch. For traders they are key dates: the end of a large cliff can put a sudden wave of tokens in the hands of people who bought at much lower prices, and unlock trackers highlight these events weeks ahead.
The impact depends on size and on who is unlocking. A cliff covering 2% of supply may pass unnoticed, while one releasing 20% to early investors can weigh on the price for weeks. Some recipients hedge or sell over the counter before the cliff, so the effect is not always visible on the day itself.
Example
Investor tokens have a one-year cliff followed by 24 monthly unlocks; on the first anniversary of the launch, 25% of their allocation becomes liquid at once.