Token Vesting Schedule Calculator

A token vesting schedule is a release plan that determines when and how many tokens a recipient (such as a team member, investor, or advisor) can access over time. Vesting discourages early sell-offs and aligns long-term incentives. Tokens are typically locked for an initial cliff period, then released linearly or in tranches over the remaining vesting duration.

A cliff is an initial period during which no tokens are released. At the end of the cliff, a lump sum of tokens vests immediately, representing the accrued tokens from the cliff period. For example, a 1-year cliff with 4-year total vesting means 25% of tokens vest at month 12, then the remaining 75% vest monthly over the following 36 months.

Linear (or straight-line) vesting releases tokens at a constant rate over the vesting period. If 1,200 tokens vest over 12 months after a cliff, 100 tokens vest each month. This is the most common vesting model and is standard in most crypto team and investor agreements.

For linear vesting with a cliff: tokens unlocked at cliff = (cliff months / total months) x total tokens. Post-cliff monthly unlock = (remaining tokens) / (total months - cliff months). Cumulative unlocked at any month M = cliff tokens + ((M - cliff months) x monthly unlock rate), for M greater than or equal to cliff months.

In most jurisdictions, tokens received as compensation (through vesting) are taxed as ordinary income at their fair market value at the time of vesting. This is similar to how stock options and restricted stock units (RSUs) are taxed. Consult a tax professional for guidance specific to your situation.