Web3 Employment & Crypto Compensation: Equity, Tokens, and Tax

Crypto companies face a unique challenge in talent acquisition: competing with well-funded tech giants while navigating an uncertain regulatory landscape. The solution? Creative compensation packages combining traditional equity with token grants. But getting these packages right requires understanding the complex interplay of employment law, securities regulation, and tax compliance across multiple jurisdictions.

This guide provides a practical roadmap for crypto founders structuring competitive compensation packages while managing legal and tax risks. Whether you're making your first hire or scaling to a global team, understanding these fundamentals will help you attract top talent and avoid costly compliance mistakes.

The Web3 Compensation Advantage: Equity Plus Tokens

Traditional tech companies offer salary plus equity (stock options or RSUs). Crypto companies can go further: salary plus equity plus token grants. This three-part structure allows startups to:

Preserve cash by shifting compensation to equity and tokens
Compete with Big Tech by offering exponential upside potential
Align incentives between employees and protocol success
Attract crypto-native talent who prefer token exposure

Sample Compensation Packages:

Engineering Lead (Senior Level):

Base salary: $160,000-$200,000
Equity: 0.5%-1.0% (4-year vest, 1-year cliff)
Token grant: 25,000-50,000 tokens (4-year vest, 1-year cliff)

Product Manager (Mid-Level):

Base salary: $130,000-$160,000
Equity: 0.25%-0.5% (4-year vest, 1-year cliff)
Token grant: 15,000-30,000 tokens (4-year vest, 1-year cliff)

Marketing Manager:

Base salary: $100,000-$130,000
Equity: 0.1%-0.3% (4-year vest, 1-year cliff)
Token grant: 10,000-20,000 tokens (4-year vest, 1-year cliff)

The challenge? Each component has distinct legal and tax implications requiring careful structuring.

Employee vs. Contractor: Classification Matters

Before structuring compensation, determine whether you're hiring an employee or engaging a contractor. Misclassification carries severe penalties: back taxes, penalties, interest, and potential liability for benefits.

IRS Common Law Test

The IRS applies a multifactor test focusing on control:

Factors Indicating Employee Status:

Company controls when, where, and how work is performed
Company provides tools, equipment, and workspace
Work is performed on an ongoing basis (not project-specific)
Worker receives training from company
Worker cannot hire assistants or delegate work
Services are integral to company's business

Factors Indicating Contractor Status:

Worker controls methods and timing of work
Worker uses own tools and equipment
Engagement is project-based with defined deliverables
Worker markets services to multiple clients
Worker bears risk of profit or loss
Worker can be replaced without company approval

Crypto-Specific Considerations:

Many crypto companies default to contractor arrangements for flexibility and reduced compliance burden. However, this approach carries risk:

Core team members working full-time on company business likely qualify as employees under the economic realities test
Remote work doesn't equal contractor status - the control test applies regardless of location
Token grants complicate classification - significant token allocations suggest employee-like relationship

Multi-State Implications

If you classify someone as an employee, you trigger obligations in their work location state:

Payroll tax withholding (state income tax, unemployment insurance)
Workers' compensation insurance
State labor law compliance (meal breaks, overtime, final paycheck timing)
Wage payment requirements (frequency, method, pay stub details)

California employers face additional requirements:

Itemized wage statements with specific details
Meal and rest break compliance (or premium pay)
Strict final paycheck timing (immediately upon termination without cause)
Broad definitions of "employee" favoring workers

Best Practice Recommendations

Default to employee classification for full-time, ongoing relationships
Reserve contractor status for discrete projects with defined scope
Document the relationship with clear agreements reflecting actual arrangement
Review periodically - relationships evolving from contractor to employee require reclassification
Consult employment counsel in each jurisdiction where workers are located

Equity Compensation: Stock Options and RSUs

Traditional equity compensation provides employees with ownership in the company entity (typically a C-Corp or Delaware corporation).

Stock Options vs. RSUs

Incentive Stock Options (ISOs):

Tax advantage: No tax on grant or vesting; capital gains on sale (if holding periods met)
Requirements: $100K annual vesting limit, exercise within 10 years, employee-only
Best for: Early-stage companies with low 409A valuations

Non-Qualified Stock Options (NSOs):

Flexibility: No vesting limits, can grant to contractors and advisors
Tax treatment: Ordinary income on exercise (spread between FMV and strike price)
Best for: Later-stage companies, non-employee grants

Restricted Stock Units (RSUs):

No purchase required: Shares delivered on vesting
Tax treatment: Ordinary income on vesting based on FMV
Best for: Later-stage companies with established valuations

409A Valuations: The Hidden Cost

Stock options must have an exercise price at or above fair market value (FMV) on the grant date. Establishing FMV requires a 409A valuation—an independent appraisal of your company's common stock.

409A Valuation Costs:

Initial valuation: $5,000-$10,000 for early-stage companies
Complex situations: $10,000-$15,000+ (multiple share classes, recent financing, revenue)
Refresh frequency: Every 12 months or after "material event" (funding round, significant business change)

Material events triggering new 409A:

Equity financing round
Acquisition offer or term sheet
Significant revenue increase or business pivot
Secondary market transactions
Token launch or listing (potentially)

Penalty for non-compliance: If you grant options below FMV without proper 409A valuation, recipients face:

Immediate taxation on spread (even if not exercised)
20% penalty tax
Interest on underpayment

Practical Equity Structuring

Standard vesting terms:

4-year vesting with 1-year cliff (industry standard)
Monthly vesting after cliff
Single-trigger acceleration on change of control (25%-50% common for early employees)
Double-trigger acceleration becoming more common (requires termination + acquisition)

Early exercise provisions: Allow employees to exercise unvested options and file 83(b) election, converting future ordinary income to capital gains. Benefits employees if company value appreciates significantly, but carries risk if company fails (employee loses exercise price paid).

Token Grants and Vesting: The Crypto Component

Token grants provide employees with ownership in the protocol or network, distinct from equity in the company entity.

Structuring Token Compensation

Key decisions:

Grant size: Percentage of total token supply allocated to team
Vesting schedule: Alignment with equity vesting (typically 4 years)
Cliff period: 1-year cliff standard to reduce turnover risk
Acceleration: Conditions for accelerated vesting
Transferability: Lock-up periods and trading restrictions

Sample token vesting schedule:

Total grant: 40,000 tokens
Vesting period: 4 years
Cliff: 1 year (10,000 tokens vest on month 12)
Monthly vesting: 833.33 tokens/month for months 13-48

Token Grant Mechanics

Pre-launch tokens: Companies typically grant tokens before network launch using:

Token grant agreements promising future delivery
SAFT-like structures (though employment context differs from investment)
Restricted token agreements delivered to escrow or smart contract

Post-launch tokens: After token launch or generation event:

Tokens delivered to employee wallet (directly or through vesting contract)
Smart contract enforces vesting schedule
Employee has custody but cannot transfer until vested

Vesting enforcement methods:

Smart contract vesting: Tokens locked in contract, released programmatically
Company custody: Company holds tokens until vesting (less common, introduces counterparty risk)
Time-locked wallets: Multi-sig or time-lock enforces vesting schedule

Securities Law Considerations

Token grants to employees may be securities under the Howey test, triggering:

Potential securities law requirements:

Registration or exemption (typically Regulation D, Section 4(a)(2) exemption)
Form D filing if relying on Regulation D
State blue sky compliance (or relying on exemptions)
Accredited investor verification (if required by exemption)

Employee exemptions: SEC Rule 701 provides exemption for compensatory issuances, but:

Applies to equity securities of the company
Token status as security remains uncertain
May not cover protocol tokens distinct from company securities

Conservative approach:

Treat token grants as potential securities
Limit grants to accredited investors or rely on exemptions
Include securities legends and transfer restrictions
Consult securities counsel on structure

Tax Treatment of Token Compensation: What Employees Owe

Token compensation creates complex tax obligations that both employers and employees must understand.

Timing of Taxation

General rule: Tokens are taxed as ordinary income when they vest and become transferable.

Fair market value determination:

Listed tokens: Trading price on vesting date
Unlisted tokens: Valuation required (appraiser, comparable transactions)
Pre-functional tokens: Potentially no FMV until functionality exists (uncertain)

Example calculation:

Employee receives grant of 20,000 tokens
Vesting: 4 years with 1-year cliff
Year 1 cliff vesting: 5,000 tokens vest
Token FMV on vesting date: $2.50
Ordinary income recognized: 5,000 × $2.50 = $12,500
Employee tax liability (37% top rate): $4,625

The problem? Employee owes $4,625 in taxes but may not be able to sell tokens to cover tax (illiquidity, lock-ups, or lack of market).

Withholding Obligations

Employer withholding requirements:

When tokens vest, employers must withhold:

Federal income tax (W-4 withholding rates)
FICA taxes (Social Security 6.2%, Medicare 1.45%)
State income tax (varies by state)
Unemployment taxes (FUTA, SUTA)

Total withholding: ~30-40% of FMV on vesting

Withholding mechanics:

Cash withholding: Employee pays cash to cover taxes (burdensome)
Share withholding: Company withholds tokens to cover tax (sell tokens or use company cash)
Net settlement: Reduce token grant by withholding amount (most common)

Example - net settlement:

5,000 tokens vest at $2.50 FMV = $12,500 income
Assumed 35% total withholding = $4,375 tax
Company withholds: 1,750 tokens ($4,375 ÷ $2.50)
Employee receives: 3,250 tokens

Challenge: If token is illiquid, company must sell tokens or pay withholding from treasury, creating cash flow burden.

Capital Gains on Sale

After vesting and income recognition:

Employee's tax basis = FMV on vesting date
Sale after >1 year holding = long-term capital gains (lower rates)
Sale within 1 year = short-term capital gains (ordinary income rates)

Example:

Employee receives 3,250 tokens (after withholding)
Tax basis: $2.50/token = $8,125 total basis
Sale 18 months later at $5.00/token = $16,250
Capital gain: $16,250 - $8,125 = $8,125
Tax (20% LTCG rate): $1,625

Estimated Tax Requirements

Employees receiving token compensation must make quarterly estimated tax payments if:

Tax liability exceeds $1,000 for the year
Withholding doesn't cover at least 90% of current year tax or 100% of prior year tax

Practical guidance for employees:

Calculate expected vesting schedule and estimated FMV
Make quarterly estimated payments to avoid underpayment penalties
Consult tax advisor on state tax obligations (varies significantly)
Consider selling vested tokens to cover tax liability

Tax Reporting

Employer reporting obligations:

Form W-2: Report token income in Box 1 (wages), Box 3 (Social Security), Box 5 (Medicare)
Form 1099-MISC (contractors): Report token payments in Box 7 (nonemployee compensation)
Form 1099-B (if applicable): Report token sales if company facilitates

Employee reporting:

Report token income on Form 1040 (already included in W-2)
Report token sales on Schedule D and Form 8949
Track basis carefully for each vesting event

International Hiring: EOR Services and Compliance

Crypto companies often hire globally to access talent and create distributed teams. International hiring introduces additional complexity:

Employer of Record (EOR) Services

Rather than establishing legal entities in each country, many crypto companies use EOR services:

How EOR works:

EOR becomes legal employer in foreign jurisdiction
EOR handles payroll, tax withholding, benefits, compliance
Company maintains day-to-day management and work direction
Company pays EOR fee (typically 10-15% of compensation)

Leading EOR providers for crypto companies:

Deel: Crypto-friendly, handles token compensation, 150+ countries
Remote: Strong compliance infrastructure, contractor-to-employee conversion
Velocity Global: Enterprise-focused, detailed reporting
Pilot: Startup-friendly, flexible entity structuring

EOR limitations:

EOR may not support token compensation (requires negotiation)
Some jurisdictions require local entity (China, India with restrictions)
IP assignment may require additional documentation
Less control over employee experience

Country-Specific Considerations

Common hiring jurisdictions for crypto:

United Kingdom:

Token grants generally taxed as employment income on vesting
Employer National Insurance contributions (13.8% on benefits)
EMI scheme provides tax advantages for qualifying companies (similar to ISOs)
Crypto-friendly regulatory environment

Singapore:

Favorable tax treatment: token grants taxed as employment income but lower rates (max 22%)
No capital gains tax on token appreciation
Strong crypto regulatory framework
Popular for Asian hiring

Germany:

Token grants taxed as employment income (progressive rates up to 45%)
Social contributions up to ~20%
Strict employment protections and termination requirements
Employee-friendly labor courts

Portugal:

Crypto-friendly tax regime (individual crypto gains often tax-free)
Token grants as employment income taxed progressively
Non-habitual resident program provides tax advantages
Growing crypto hub

International Compliance Checklist

When hiring internationally:

Offer Letters and Employment Agreements: Essential Provisions

Comprehensive employment documentation protects both company and employee interests.

Offer Letter Structure

Key components:

Position and reporting structure
Start date and employment status (at-will, fixed-term)
Compensation breakdown:
- Base salary (payment frequency, currency)
- Equity grant details (type, amount, vesting, subject to board approval)
- Token grant terms (amount, vesting, subject to plan and separate agreement)
- Benefits overview (health, 401k, vacation)
Conditions precedent (background check, I-9 verification, non-compete review)
Contingencies (board approval of equity, plan adoption)
Expiration date (typically 5-7 days to accept)

Sample equity and token language:

Subject to approval by the Company's Board of Directors, you will be granted an option to purchase 50,000 shares of the Company's common stock at an exercise price equal to the fair market value as of the grant date, as determined by the Board. This option will be subject to the terms of the Company's 2025 Equity Incentive Plan and a separate Stock Option Agreement, including a four-year vesting schedule with a one-year cliff.

Additionally, subject to adoption of the Company's Token Grant Plan and Board approval, you will be granted 30,000 [TOKEN] tokens, subject to a four-year vesting schedule with a one-year cliff. The specific terms will be set forth in a separate Token Grant Agreement.

Employment Agreement Provisions

Comprehensive employment agreements should include:

1. Employment terms:

At-will employment statement (where enforceable)
Duties and reporting relationship
Location (remote work policies)
Hours and availability expectations

2. Compensation and benefits:

Base salary and review schedule
Equity and token grant incorporation by reference
Benefits eligibility
Expense reimbursement

3. Confidentiality obligations:

Broad definition of confidential information
Exceptions (publicly available, independently developed)
Return of materials on termination
Survival post-termination

4. Intellectual property assignment:

Work-for-hire provisions
Pre-existing IP exclusion
Moral rights waiver (if applicable)
Cooperation with patent prosecution

5. Non-competition and non-solicitation:

Geographic scope (limited to enforceable jurisdictions)
Duration (typically 12 months post-termination)
Customer and employee non-solicit
State-specific limitations

6. Termination provisions:

Notice requirements
Severance eligibility
Effect on equity and token vesting
Good leaver / bad leaver definitions
Post-termination obligations

7. Dispute resolution:

Choice of law (typically Delaware for corporation)
Arbitration clause (consideration of enforceability)
Fee allocation
Jury waiver

IP Assignment and Non-Competes: State Law Variations

Intellectual property and restrictive covenants are critical for protecting company interests, but enforceability varies dramatically by jurisdiction.

Intellectual Property Assignment

Work-for-hire doctrine: Under federal copyright law, works created by employees within the scope of employment are automatically owned by employer. However:

Scope limitation: Only applies to work performed within employment duties
State law variations: Some states (California) limit IP assignment to work-related inventions
Patent rights: Require express assignment (not automatic)

California Labor Code § 2870: California restricts employee IP assignment. Employers cannot require assignment of:

Inventions developed entirely on employee's own time
Without using employer's equipment, supplies, facilities, or trade secrets
That do not relate to employer's business or R&D
That do not result from work performed for employer

Required notice: California employers must provide written notice of § 2870 limitations.

Other states with similar laws: Delaware, Illinois, Kansas, Minnesota, North Carolina, Utah, Washington (though specifics vary)

Best practices:

Use broad IP assignment language while noting state law exceptions
Include pre-existing IP disclosure schedule
Require disclosure of inventions during employment
Document work-related nature of crypto protocol development

Non-Compete Agreements: Enforceability Landscape

Non-compete enforceability varies dramatically by state:

States generally prohibiting non-competes:

California: Void except in limited circumstances (sale of business, dissolution of partnership)
North Dakota: Void with narrow exceptions
Oklahoma: Generally void
District of Columbia: Banned for employees earning under $150,000 (as of 2025)

States with restrictions:

Colorado: Limited to executive, professional employees; geographic and duration limits
Illinois: Requires minimum compensation ($75,000+), restricted duration
Massachusetts: Limited to 12 months, requires garden leave or other consideration
Oregon: Requires minimum compensation, limited to 18 months
Washington: Requires minimum compensation, limited scope

States generally enforcing (with reasonableness requirements):

Delaware: Enforces reasonable non-competes (important for DE corporations)
New York: Enforces if reasonable in scope, duration, geography
Texas: Enforces with consideration and reasonable limitations
Florida: Enforces if protecting legitimate business interest

Reasonableness factors (enforcing jurisdictions):

Duration: 6-12 months generally reasonable; >2 years often excessive
Geography: Limited to areas where company operates or has customer relationships
Scope: Narrow to employee's specific role and responsibilities
Consideration: Must receive something of value (continued employment often insufficient)

Alternative Protective Measures

Given limited non-compete enforceability, focus on alternatives:

Non-solicitation agreements:

Customer non-solicit: Generally enforceable if reasonable (12-24 months)
Employee non-solicit: Protects against recruiting team members
Broader enforceability than non-competes (even in California in limited circumstances)

Non-disclosure agreements:

Enforceable across jurisdictions
Protect confidential information and trade secrets
Survives employment termination
Critical for crypto protocols with proprietary technology

Trade secret protection:

Identify and mark confidential materials
Implement information security measures
Limit access on need-to-know basis
Use federal and state trade secret laws (DTSA, UTSA)

Garden leave provisions:

Pay employee to not work during notice period
Prevents joining competitor while receiving salary
More enforceable than non-competes
Costly but effective for key employees

Termination and Clawbacks: Good Leaver / Bad Leaver Provisions

Termination terms significantly impact equity and token value. Clear provisions prevent disputes and protect company interests.

Termination Categories

1. Voluntary resignation:

Employee initiates termination
Typically no severance
Unvested equity and tokens typically forfeited
Exercise period for vested options (typically 90 days)

2. Termination without cause:

Company terminates for business reasons
May include severance (negotiated)
Unvested equity and tokens typically forfeited (unless acceleration)
Extended exercise period increasingly common (1-year)

3. Termination for cause:

Serious misconduct (fraud, breach, criminal activity)
No severance
Unvested equity and tokens forfeited
Vested options may be cancelled (if agreement permits)
Potential clawback of vested tokens

4. Death or disability:

Typically accelerates partial vesting (12 months common)
Extended exercise period for vested options
Token grants may continue vesting or accelerate (per plan terms)

5. Change of control:

Acquisition or significant ownership change
May trigger acceleration (single or double-trigger)
Negotiated in offer letter for key employees

Good Leaver / Bad Leaver Framework

Common in startup context, particularly for token grants:

Good leaver:

Voluntary resignation (after minimum period)
Termination without cause
Death or disability
Constructive discharge

Good leaver treatment:

Retain vested tokens
Potential partial acceleration
Extended exercise period
No clawback of vested compensation

Bad leaver:

Termination for cause
Material breach of agreement
Competition with company
Resignation during critical period

Bad leaver treatment:

Forfeit unvested tokens
Potential clawback of vested tokens (if agreement permits)
Repurchase vested tokens at discount or cost
Shortened exercise period

Legal limitations on clawbacks:

Clawback provisions must comply with:

State wage laws: Cannot reclaim amounts qualifying as "wages" after earned
Bankruptcy considerations: Clawbacks within 90 days may be preferential transfers
Securities law: Clawbacks of securities may require SEC compliance (Rule 10D-1)
Contract formation: Adequate consideration required for post-grant clawback imposition

Best practice: Include clawback provisions in initial grant agreement, not retroactively imposed.

Severance Considerations

Typical severance packages (startup context):

Early employees: 3-6 months base salary
Executives: 6-12 months base salary, partial equity acceleration
Standard employees: 1-3 months base salary (or none)

Severance conditioned on:

Release of claims
Non-disparagement
Cooperation with transition
Compliance with confidentiality and restrictive covenants
Return of company property

WARN Act compliance: If you're conducting mass layoffs (50+ employees), federal and state WARN Acts require:

60 days advance notice
Notice to employees, state, and local government
Penalties for non-compliance: back pay and benefits for notice period

Compliance Checklist by Jurisdiction

California Employers

Delaware Corporations (Common Jurisdiction)

Adopt equity incentive plan with board and stockholder approval
Conduct 409A valuation before issuing stock options
Issue equity grants only at or above 409A FMV
Maintain option exercise records and cap table
Comply with Delaware corporate formalities (annual franchise tax, registered agent)
Include Delaware choice of law in employment agreements
File UCC-1 if taking security interest in vested equity

Remote Employees (Multi-State)

Determine work location state and register as employer
Withhold state income tax in work location state
Obtain workers' compensation insurance in work location state
Comply with work location state wage and hour laws
Review non-compete enforceability in work location state
Provide state-mandated benefits (paid leave, disability insurance)
Issue state-compliant wage statements
Follow work location state termination notice and final pay requirements

International Employees

Engage EOR or establish local entity in employee's country
Comply with local employment law (contracts, notice periods, severance)
Provide mandatory benefits (pension, health insurance, parental leave)
Withhold local income tax and social contributions
Understand local tax treatment of equity and token grants
Assess GDPR compliance for EU employees (data processing, privacy notices)
Review IP assignment and non-compete enforceability under local law
Implement local payroll and reporting systems
Consider tax equalization for relocated employees

Token-Specific Compliance

Key Takeaways for Crypto Founders

Structuring compensation packages:

Use three-part structure (salary + equity + tokens) to compete for talent while preserving cash
Align equity and token vesting schedules (4-year vest, 1-year cliff) for simplicity
Obtain 409A valuation before granting stock options (budget $5K-$15K initially)
Include acceleration provisions for key hires (25%-50% on change of control)

Managing tax obligations:

Withhold taxes on token vesting (30-40% of FMV) - plan for cash flow impact
Use net settlement to simplify withholding (reduce grant by tax amount)
Provide employees with tax guidance on estimated payments and basis tracking
Report token income on W-2 (employees) or 1099-MISC (contractors)

International hiring:

Use EOR services for small international teams (Deel, Remote, Velocity Global)
Budget 10-15% EOR fees on top of compensation
Understand local tax treatment of tokens (varies significantly by country)
Review IP assignment and non-compete enforceability (many countries restrict)

Protecting company interests:

Focus on non-disclosure and non-solicitation (broader enforceability than non-competes)
Use comprehensive IP assignment with pre-existing IP exclusions
Implement good leaver / bad leaver provisions for token grants
Include clawback provisions in initial grant agreements (not retroactive)

Avoiding compliance pitfalls:

Classify workers correctly (employee vs. contractor) - default to employee for core team
Register as employer in each state where employees work
Comply with California Labor Code requirements for California employees (no non-competes, itemized wage statements, expense reimbursement)
Provide mandatory notices (wage theft, IP assignment limitations)

Related Resources

Internal guidance:

DAO Employment Classification - Classifying DAO contributors as employees or contractors
Crypto Tax Lawyer's Guide - Comprehensive tax planning for crypto transactions
Crypto Startup Legal Checklist - Essential legal tasks for launching a crypto company
Token Launch Legal Checklist - Securities, tax, and regulatory compliance for token offerings

Practice areas:

Corporate & Transactions - Entity formation, venture capital, equity compensation

External resources:

IRS Publication 15-B: Employer's Tax Guide to Fringe Benefits
SEC Rule 701: Exemption for Compensatory Issuances
California Labor Code § 2870: Employee Inventions
Delaware General Corporation Law § 157: Rights and Options Respecting Stock

When to Seek Legal Counsel

Consult experienced employment and tax counsel when:

Hiring your first employee - Establish compliant compensation structure from the start
Granting token compensation - Navigate securities law and tax complexities
Making executive hires - Negotiate competitive packages with acceleration and severance
Hiring internationally - Comply with foreign employment and tax laws
Conducting layoffs - Ensure WARN Act compliance and minimize liability
Facing misclassification claims - Defend against employee vs. contractor disputes
Structuring acquisition compensation - Handle change of control acceleration and retention
Implementing equity plans - Draft compliant equity incentive and token grant plans

About the Author

Chanté Eliaszadeh represents crypto, AI, and fintech startups on corporate transactions, regulatory compliance, and employment matters. She helps founders structure competitive compensation packages while navigating the complex intersection of employment law, securities regulation, and tax compliance.

Schedule a consultation to discuss your Web3 hiring and compensation strategy.

This article provides general information only and does not constitute legal or tax advice. Employment law, securities regulation, and tax treatment vary significantly by jurisdiction and individual circumstances. Consult qualified legal and tax advisors for advice specific to your situation.

Publication Notes:

Word count: ~6,800 words (comprehensive guide format)
Target audience: Crypto founders, HR leaders, startup executives
SEO keywords: crypto employee compensation, web3 employment, token grants employees, crypto equity compensation, web3 hiring
Internal links: 4 related articles (2 scheduled, 2 in progress)
External authority links: IRS, SEC, state labor code references
Practical value: Sample comp packages, withholding calculations, jurisdiction-specific checklists
Unique angle: Three-part compensation structure (salary + equity + tokens) with integrated tax and compliance guidance