How Does a ‘Cliff’ Mechanism Work in a Vesting Schedule?
A 'cliff' is an initial period within a vesting schedule, often 6 or 12 months, during which no tokens are vested or released, even if the team member or investor is technically vesting. Only once the cliff period is complete does the first batch of tokens unlock, and the regular vesting schedule begins.
It ensures that recipients remain committed for a minimum period.
