Cliff Vesting

Cliff Vesting

Governance Layer • Validators • Protocol Control

delayed unlock model

Cliff Vesting is a token distribution model where no rewards or tokens are released until a specific period—known as the “cliff”—has passed. Once this initial delay expires, tokens begin to unlock either all at once or on a rolling schedule. This model is commonly used to secure long-term alignment from team members, advisors, or early investors by discouraging early exits or speculative flipping.

Use Case: A project allocates tokens to founders with a 12-month cliff, meaning they receive nothing for the first year. After that, tokens unlock monthly over the next three years, rewarding long-term commitment and performance.

Key Concepts:

• Initial Lock Period — No tokens released until the cliff ends
• Vesting Start Trigger — Unlock begins only after the cliff duration is reached
• Retention Incentive — Deters premature exits by stakeholders
• Governance Control — Delays influence of early token recipients in DAOs or votes
• Vesting Curves — Custom schedules tailored to project needs
• Linear Vesting — Tokens released steadily over a defined period
• Backloaded Vesting — Majority of tokens release in later stages
• Token Unlock Structures — Scheduled release of locked token allocations
• Token Vesting Models — Framework for structured token release
• Tokenomics — Economic design governing token supply, demand, and distribution
• Supply Structure — Predefined rules governing token creation and distribution
• Distribution Models — Methods for allocating tokens to participants
• Investor Tranches — Segmented allocation tiers for different investor classes
• DAO — Decentralized autonomous organization using token-based governance

Summary: Cliff Vesting serves as a protective delay mechanism in token distribution, ensuring that early contributors or investors stay committed through critical growth phases. It’s a foundational tool for sustainable tokenomics and fair protocol development.