A challenge facing many tokens in the crypto industry is their lack of utility and value capture. While DeFi, gaming, and NFT crypto applications have created substantial value, only a few tokens from these protocols successfully capture value (as of May 2023).
Fee for service is one of the most direct ways to align incentives within an ecosystem because the underlying product requires the purchase/ownership of the native token. This requirement means that the builders, network validators/participants, and users are all incentivized to behave harmoniously within the ecosystem.
Token allocation is crucial in a token project’s success. A good allocation strategy will align the incentives of the community, core team, and investors, while the wrong design could spell poor traction, conflicting incentives, or mistrust from your community.
Vesting and lockups each have their own purpose, and also legal, tax, and compliance considerations. Understanding the nuances is important so you can set up your token incentives properly.
Paying taxes for employees with tokens is complex and confusing. The consequences of messing this up are critical. An introduction to token compensation types and tax considerations.
This article will explain how to benchmark, calculate, and operationalize individual token-based offers for employees once a company’s token goes live.
Token-based compensation, a new and powerful form of incentive alignment, introduces novel complexity to startup compensation.
For early-stage crypto companies, there’s a new fundraising document called the “token side letter”, that is being used to raise capital from accredited and institutional investors.
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