Vesting and cliff: how the unlock schedule affects token price
A poorly configured vesting schedule is one of the main causes of post-TGE price pressure. We explain the principles behind a proper unlock structure.
What vesting is and why it matters
Vesting is the mechanism for gradually unlocking tokens for the team, investors, and other participants. Its purpose is to align the long-term interests of token holders with the fate of the project.
Cliff: the waiting period before unlocking begins
A cliff is the period between receiving an allocation and the start of unlocking. The standard cliff for a team is 12 months. Without a cliff, the team can sell tokens immediately after TGE.