Vesting cliff refers to the period of time that a participant must wait before being able to access or exercise their rights to a specific amount of tokens or coins. During this period, the tokens or coins are held in escrow or another form of restricted account.
At the end of the vesting cliff period, the participant is able to access a portion or all of the tokens or coins that have vested. This serves as a form of incentive for participants to stay involved and committed to the project or team.
The vesting cliff is designed to mitigate risks such as participants leaving the project early or engaging in activities that may be detrimental to the project’s success. It also helps align the interests of participants with the long-term goals of the project.
Overall, the vesting cliff is a mechanism used in the cryptocurrency space to ensure that participants are committed to the project and its success by restricting access to tokens or coins for a certain period of time.
