What is Vesting Cliff?

A vesting cliff is a mandatory waiting period during which zero tokens are released. Once the cliff ends, vesting begins and tokens unlock according to a schedule.

How does Vesting Cliff work?

At token genesis, a vesting contract locks tokens and records the cliff date.
No tokens can be claimed until the cliff date passes enforced by smart contract.
After the cliff, linear vesting begins typically 1/48th released monthly over 4 years.

Why does Vesting Cliff matter?

Cliffs prevent founders from dumping immediately after launch. A 1-year cliff signals that founders are committed long enough to build real value before they can sell.

Key features of Vesting Cliff

Zero tokens released during cliff no exceptions
Smart contract enforced cannot be accelerated
Typically 1 year for founders, 6 months for advisors
After cliff, linear vesting begins automatically

Examples of Vesting Cliff

A founder's allocation with a 1-year cliff and 4-year vesting means no tokens in year 1, then 1/48th monthly for 4 years. Projects without cliffs where founders can sell from day one are a significant red flag.