Cliff
A vesting period during which no tokens are released, followed by an initial larger unlock.
In-Depth Explanation
A 1-year cliff with 4-year vesting means nothing vests for 12 months, then 25% unlocks immediately, with the remainder vesting monthly over years 2-4. Cliffs protect against short-term contributors who might leave immediately. They're standard in both startup equity and token allocations.
Related Terms
More in Tokenomics
View all →Emissions
New tokens distributed by a protocol as incentives, typically to liquidity providers or users.
Liquidity Mining
Earning token rewards by providing liquidity to a DeFi protocol.
Token Buyback
When a protocol uses revenue to purchase its own token from the open market, reducing circulating supply.
Dividend
Direct distribution of protocol revenue to tokenholders, typically in ETH, stablecoins, or the protocol's native token.