GlossaryIntermediate
Cliff Vesting
A vesting structure where no tokens unlock at all until a specific date, at which point a large portion unlocks all at once.
Cliff vesting is a vesting structure (see Kaavon's "Vesting" glossary definition) where no tokens unlock at all until a specific date (the "cliff"), at which point a substantial portion — sometimes the entire vested amount to that point — unlocks all at once.
A cliff is commonly combined with a subsequent linear vesting period (see Kaavon's "Linear Vesting" glossary definition) rather than used alone — for example, a one-year cliff followed by monthly linear unlocks over the remaining vesting period, a common structure for team and early-investor token allocations.
Examples
- A one-year cliff means a token recipient receives nothing for a full year, then a lump sum unlocks at once on the cliff date.
- Cliff vesting is commonly combined with a subsequent linear vesting schedule, rather than used as the only unlock mechanism for an entire allocation.