Vesting Cliff Period

A vesting cliff period is a specific timeframe during which token allocations for team members, advisors, or early investors remain locked and non-transferable. Once this period expires, a significant portion of the tokens often becomes available for sale, creating a potential liquidity event.

The cliff is designed to align the long-term incentives of key stakeholders with the success of the project. From a trading perspective, the expiration of a cliff is a critical date, as it often marks a period of heightened volatility and potential sell-side pressure.

Analysts track these schedules to determine the risk of sudden supply influxes that could negatively impact market price.