Cliff (Vesting)
A cliff is the initial waiting period in a vesting schedule before any allocated tokens can be unlocked or claimed.
In crypto tokenomics, a cliff is a set period at the start of a vesting schedule during which tokens are locked and cannot be received, sold, or transferred by the allocated party. After the cliff ends, some or all of the locked tokens begin to unlock according to the project’s vesting terms. Cliffs are commonly used for team members, advisors, early investors, ecosystem grants, or other token allocations tied to a project launch.
Cliffs matter because they help align incentives and reduce the chance that large holders immediately sell tokens after launch. For example, a project might give a founder 1 million tokens with a 12-month cliff and then monthly vesting over three years. The founder receives no tokens during the first year; after the cliff, a portion unlocks, and the rest unlocks gradually. Compared with immediate unlocking, a cliff can support longer-term commitment, though it does not guarantee project success or prevent future selling pressure.
Other terms in Tokenomics & Launches
Airdrop
A token distribution method where a project sends free tokens to users, often to reward early activity or broaden ownership.
Emission Schedule
A plan that defines how and when new tokens are created, released, or unlocked into circulation.
Fair Launch
A token launch model that aims to give the public equal initial access, with no special early allocations for insiders or private investors.
ICO
An ICO is a token sale where a crypto project raises funds by selling newly created tokens to early supporters.