What Is the Purpose of a Vesting Cliff in a Project’s Token Distribution?

The primary purpose of a vesting cliff is to ensure that early team members, investors, and advisors are committed to the project for a minimum period before they can sell or use their tokens. It aligns their incentives with the long-term success of the protocol.

It also prevents a sudden, large-scale token dump shortly after the project's launch, which could destabilize the market price and undermine community confidence.