Token Economics

Glossary

cliff

Vesting cliff

A waiting period after launch during which no tokens unlock for that bucket. Common for team and investor shares.

A cliff is the minimum waiting period before any tokens from a vesting allocation become claimable. Typical team and investor cliffs are 12 months: from TGE day, the team and investors hold rights to their tokens but can't sell them for a year, then linear vesting kicks in.

Cliffs are a commitment signal. A team willing to wait 12+ months before any unlock signals genuine long-term alignment. A team with a 0-month cliff effectively asks the market to trust them not to dump on day one — which the market usually doesn't. Cliffs above 18 months are rare and usually read as overkill or signaling-theater.

Common questions

Why do teams use cliffs?

Cliffs prevent team or investor selling immediately after launch — the worst time for a project, when price is most fragile and confidence is being established. By committing to a waiting period, the team aligns its incentives with the broader market.

What's the standard cliff length?

12 months is the modal cliff for team and investor allocations in 2026 launches. Six months is common for early/strategic investors who took more risk; 18–24 months for founders. Zero-cliff designs are rare and usually flag a problem to sophisticated buyers.

cliff in real launches

Hand-verified examples from the Token Economics corpus.

Model it yourself

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Drag the vesting handles, change the TGE %, watch the sell-pressure chart and risk score update in real time. Free, no signup.

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