How Does a Token ‘Cliff’ Period Affect the Vesting Schedule?

A cliff period is an initial segment of the vesting schedule, typically 6 to 12 months, during which no tokens are released to the recipient. If the recipient leaves the project before the cliff date, they forfeit all their unvested tokens.

Only after the cliff period ends does the regular, gradual vesting (e.g. monthly release) begin. The cliff serves as a strong incentive for early team members and investors to commit for a minimum period, ensuring stability and preventing a quick exit with vested tokens.