A “cliff” in cryptocurrency refers to a specific point in a token’s vesting schedule where a sudden release of a large amount of tokens occurs. This typically happens after a predetermined period where no tokens are distributed, followed by an immediate release of a substantial portion.Cliffs are often used in token distributions for teams, advisors, or early investors to ensure alignment with the project’s long-term success. For example, a project may set a one-year cliff followed by monthly releases, ensuring stakeholders remain committed to the project during its initial phase.While cliffs can provide benefits by incentivizing long-term holding and commitment, they can also lead to price volatility. When a large number of tokens are released at once, the market may experience a sudden influx, potentially driving down the token’s price if not managed properly. Understanding cliffs is essential for investors as it affects their strategy and expectations regarding price movements and token availability over time.