Understanding Vesting

What is Vesting?

Vesting is the process of earning your tokens over time. When you receive a grant, the tokens don’t belong to you all at once — you earn them gradually according to a vesting schedule.

How Vesting Works

The Cliff

Most grants have a cliff period — an initial waiting period before any tokens vest. If you leave before the cliff, you typically forfeit all tokens.

After the Cliff

Once the cliff passes, a chunk of tokens vest immediately. After that, tokens continue vesting on a regular schedule (usually monthly).

Example: 10,000 Token Grant with 4-Year Vesting, 1-Year Cliff

Timeline	Event	Tokens Vested	Total
Month 0	Grant starts	0	0
Month 1–11	Cliff period (nothing vests)	0	0
Month 12	Cliff! 25% vests	2,500	2,500
Month 13	Monthly vest	~208	2,708
Month 14	Monthly vest	~208	2,917
…	…	…	…
Month 48	Fully vested	~208	10,000

Key Terms

Term	Definition
Unvested	Tokens you haven’t earned yet
Vested	Tokens you’ve earned and can receive
Cliff	Waiting period before any tokens vest
Vesting Frequency	How often tokens vest (monthly, quarterly, annually)
Fully Vested	All tokens in the grant have vested

Tracking Your Vesting

In the TGA portal:

Go to Grants and click on a grant
View the Vesting Schedule tab
See a timeline of past and upcoming vesting events
Check how many tokens are currently vested vs unvested

What Happens When You Leave

Scenario	Result
Before cliff	All tokens forfeited
After cliff	Keep vested tokens, forfeit unvested
Fully vested	Keep all tokens
Terminated grant	Vesting recalculated to termination date

Your organization’s admin handles the termination process. Check your grant agreement for specific terms regarding departure.

Vesting Frequencies

Frequency	How It Works
Monthly	Tokens vest once per month (most common)
Quarterly	Tokens vest every 3 months
Annually	Tokens vest once per year

Next Steps

Wallet Setup

Set up your wallet to receive vested tokens

Tax Documents

Understand tax implications

⌘I

​What is Vesting?

​How Vesting Works

​The Cliff

​After the Cliff

​Example: 10,000 Token Grant with 4-Year Vesting, 1-Year Cliff

​Key Terms

​Tracking Your Vesting

​What Happens When You Leave

​Vesting Frequencies

​Next Steps