The comprehensive guide to token compensation

Token compensation is the single most misunderstood tool a crypto founder has. Done well it aligns a team through a full market cycle. Done badly it creates a two-tier company where the earliest hires get rich and everyone who joined after them quietly resents the cap table.

A good comp package has three components: cash at market rate, equity in the corporate entity, and a token allocation with a real vesting schedule. All three matter. Skipping any of them is a mistake we see repeatedly.

The vesting on the token side should mirror the equity side — four years with a one-year cliff is still the standard, and moving off it invites problems downstream.

Do not promise tokens before the tokens exist as a legal instrument. Do not use a spot price at hire time as the comp number. Do not assume every hire can hold a token position without support from a broker or a custodian.

The best offers we have seen this year are structured with a clear conversion mechanism, tax-advantaged custody, and a written policy on unlock behavior. Everything else is compounding legal risk.