Cliff Vesting
Cliff vesting is a token unlock schedule where the recipient receives zero tokens until a specific date (the "cliff"), after which a large initial tranche unlocks and the remainder vests gradually. It is used in most venture rounds, team allocations, and advisor grants.
✦ Key Insight
Cliff dates are some of the most predictable supply shocks in crypto. Traders who track them can anticipate sell pressure and position around it, while ignoring them is a common reason for being trapped in a token that looked cheap but had a wall of supply coming.
✕ Common Misconceptions
Trading a "low circulating supply" token without checking the fully diluted valuation and upcoming cliffs.
Assuming unlocked tokens are immediately sold — many holders sell over weeks.
Trusting the project's published schedule without verifying the on-chain vesting contract.
Detailed Explanation
How It Works: A vesting contract holds the allocation and enforces the schedule. A typical structure is a 12-month cliff followed by 24-36 months of linear vesting. On the cliff date, the recipient can claim the cliff portion (often 1/4 to 1/3 of total) and then claim a daily or monthly drip.
FAQs:
Where do I find cliff dates? Project docs, on-chain vesting contracts, and trackers like TokenUnlocks.
Does the price always drop? No, but it often underperforms in the weeks around unlocks.
In Practice
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