A cliff unlock occurs when a significant number of tokens are released simultaneously at the end of a cliff waiting period. Unlike linear vesting where tokens drip out gradually, cliff unlocks result in a sudden increase in circulating supply.
Cliff unlocks are considered high-impact events because they can introduce substantial selling pressure. The impact depends on the size of the unlock relative to the token's current circulating supply and daily trading volume.
Traders and investors closely monitor cliff unlock dates as they can create trading opportunities. A cliff unlock representing more than 2-3% of circulating supply is generally considered significant and may affect the token's price.