Tokenomics & On-chain

What is a vesting cliff in crypto tokenomics?

A vesting cliff is a fixed period during which allocated tokens stay fully locked, after which a first tranche unlocks all at once and the remainder releases gradually. It is used to align founders, teams, and early investors with a project's long-term progress rather than an immediate exit. For example, a one-year cliff on a four-year vesting schedule means nothing unlocks for twelve months, then 25 percent becomes available and the rest streams monthly. Cliffs matter because the unlock date can introduce sudden new supply into the market.