🧠 Topic: What is vesting and cliff — how tokens are unlocked and why this is key to the survival of the project (and your investments)
🔒 Vesting (#Vesting ) — is a mechanism for the gradual unlocking of tokens for the team, investors, and other participants in the project.$BNB
It protects the market from everyone dumping their coins on day TCE and crashing the price.
📉 What is a cliff?
A cliff is a period of complete token lockup, during which nothing can be sold.
After the cliff, the gradual unlocking begins.
🔍 A simple example:
You have 100,000 tokens
📆 Cliff: 6 months
🔓 Vesting: 12 months
→ After 6 months, you will start unlocking 1/12 each month
→ Full unlocking will be in 18 months$BTC
💡 Why is vesting necessary?
✅ Price protection in the market
✅ Motivation for the team to stay in the project
✅ Trust from investors
✅ Smooth introduction of liquidity
🚩 If there is no vesting, then:
❌ The entire team can dump tokens on the listing day
❌ Funds quickly take profits
❌ The project has no incentives to develop
❌ You are exit liquidity
📊 Typical parameters:
Category Cliff Vesting
Team 6–12 months 1–3 years
Founders 12 months 3–4 years
Investors 0–3 months 6–24 months
#Airdrop - no or 0 months immediately or 1–3 months
Community none for activity / rewards
🔎 Where to check vesting?
#Whitepaper / tokenomics
DeFiLlama → Token Unlocks
#CryptoRank → Unlocks calendar
Twitter analysts (on TGE days and launches)
📌 Conclusion:
Vesting is what keeps the market from panic.
If you see that tokens from the fund are unlocking in 3 days — it's better not to buy at that moment.$SOL
Invest where there is a plan and discipline.
📖 Subscribe to @Cryptoland_88 , so you don’t miss it. In the next issue, I will tell you how to read unlock calendars, track tokens, and avoid mass unlocks.
👆The article is for informational purposes only and is not investment advice. Thank you for your subscriptions, likes, comments!#cryptoland_88