How Does a Vesting Cliff Differ from a Linear Vesting Schedule?
A vesting cliff is a specific period at the beginning of the vesting schedule during which no tokens are released. For example, a 1-year cliff means no tokens are accessible until the 12th month.
After the cliff, the remaining tokens typically begin to vest linearly over a specified period. A linear vesting schedule, conversely, releases tokens continuously or at regular intervals from day one, without an initial lock-up period.
Glossar
Vesting Cliff
Trigger ⎊ Vesting cliffs, within cryptocurrency, options, and derivative markets, represent predetermined time-based or milestone-dependent periods before allocated assets become fully accessible.
Accelerated Vesting
Mechanism ⎊ Accelerated Vesting represents a contractual provision allowing for the immediate or expedited transfer of ownership rights for tokens or equity, bypassing the original time-based schedule.
Linear Vesting
Allocation ⎊ Linear vesting, within cryptocurrency and derivatives, represents a structured release of assets or rights over a predetermined period, diverging from immediate grant.
Vesting
Schedule ⎊ Vesting, within cryptocurrency and derivative markets, represents a predetermined release of assets ⎊ tokens, equity, or options ⎊ over a defined period, contingent upon continued participation or service.
Vesting Schedule
Allocation ⎊ The concept of a vesting schedule, particularly within cryptocurrency and decentralized finance (DeFi), fundamentally addresses the phased release of tokens or assets to participants, mitigating risks associated with immediate distribution.