Blockchain & Cryptocurrency Glossary

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Cliff Vesting

Pronunciation
[klif ves-ting]
Analogy
Cliff vesting is like a college graduation requirement—you receive no degree until you cross the finish line, then you get the full credential.
Definition
A vesting schedule where no tokens vest until a specified cliff date, after which a lump sum becomes available.
Key Points Intro
Cliff vesting aligns incentives by:
Key Points

Initial lock‑up: No tokens released before cliff time.

Lump‑sum release: All cliff portion vests at once.

Retention incentive: Encourages staying until cliff.

Can combine with linear vesting: Cliff then gradual release.

Example
Team tokens have a 12‑month cliff: at month 12, 25% unlocks, then the remainder vests monthly.
Technical Deep Dive
Contracts implement a `cliff` timestamp and `totalAmount`. On `release()`, if `now >= cliff` and `!claimed`, transfer `cliffAmount`. Subsequent vesting uses linear logic or additional cliffs.
Security Warning
A single cliff can lead to large sell‑pressure events; calibrate cliff size carefully.
Caveat
Large cliff releases may destabilize token price upon unlock.
Related Terms
Token Lock
Linear Vesting
Vesting Schedule
Milestone-Based Vesting
Token Allocation
Token Generation Event

Cliff Vesting - Related Articles

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