Cliff
A cliff is a lockup period at the start of a vesting schedule during which no tokens are released. When it ends, a larger portion becomes available at once, and the rest usually continues to unlock gradually.
How a cliff works
Projects often allocate tokens to their team, advisors and early investors under a vesting schedule, a plan that releases tokens over time instead of all at once. The cliff is the first part of that plan. Until the cliff date nothing can be claimed or sold, no matter how the project or the price develops.
The idea comes from startup equity, where a one-year cliff is a common arrangement. It ties insiders to the project for a minimum period and stops them from selling immediately after launch.
An example
Say an early investor is allocated 12 million tokens with a 12-month cliff followed by 24 months of monthly vesting, and the cliff portion equals the first year of vesting. For twelve months the investor receives nothing. On the cliff date, 4 million tokens unlock at once. After that, about 333,000 tokens unlock every month until all 12 million are released. Other designs release a fixed percentage at the cliff, so the exact terms always matter.
Why markets watch cliff dates
A cliff ending can add a large block of tokens to the circulating supply on a single day. If recipients sell, the extra supply can weigh on the price, and traders often position ahead of well-known unlock dates. Whether selling actually happens depends on the recipients, their cost basis and the market at the time; some hold or stake their tokens instead.
What to check
Look for the cliff length, the share that unlocks at the cliff, the vesting period afterwards and who the recipients are. Compare the size of the unlock with the current circulating supply and typical trading volume. Also check whether schedules can be changed by the team or by governance, and whether tokens on the schedule are already being staked or used as collateral before they are formally unlocked.
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Frequently asked questions
Is a cliff the same as vesting?
No. Vesting is the whole release schedule; the cliff is the initial period inside it during which nothing is released.
Does the price always fall after a cliff unlock?
No. Large unlocks add potential selling pressure, but the actual effect depends on demand and on what recipients choose to do.
Where can I find a project's cliff dates?
Usually in its tokenomics documentation, its token contracts, or on token-unlock tracking sites that summarize published schedules.
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