Issuing Tokens as Salaries? Engineers Not Only Receive Cash and Stock Options, But Start to Get Paid in Tokens

Trend: token pay creeps into compensation packages

It has been reported that some Chinese technology teams and Web3 startups are beginning to pay engineers not just in cash and equity, but also in project tokens. According to a Huxiu report, tokens are being offered as part of monthly pay, bonuses or long‑term incentives alongside traditional stock options — a practice that turns labor compensation into a bet on a project's future value. Short and simple: employees are being asked to take on crypto risk as part of their wage package.

How it works — upside and hazards

Reportedly, the tokens in question range from governance tokens to utility tokens tied to specific apps, and in some cases they vest over time like options. That can give engineers upside if a token finds liquidity on decentralized exchanges — but it also exposes them to extreme price volatility and uncertain legal status. Who wins if a token moons? Who loses if it crashes? And how do you price someone’s labor when half the pay is speculative?

Regulatory and geopolitical context

This trend sits uneasily against Beijing’s hardline stance on cryptocurrencies. The People’s Bank of China (中国人民银行) and other regulators effectively banned crypto trading and mining in 2021 and have repeatedly warned against financial risks from token markets. Companies paying in tokens may classify them as internal utility credits to avoid running afoul of the rules, but that is a legally fraught workaround. Add broader geopolitical tensions — export controls, sanctions and tech decoupling — and payroll in tokens looks like a risky experiment rather than a mainstream practice.

Implications for talent and compliance

For startups, tokens can conserve cash and signal strong alignment between developers and product success. For employees, they add a layer of compensation complexity and compliance uncertainty: tax treatment, labor law protection and liquidity are all open questions. It has been reported that more firms are testing the model — but will regulators clamp down, or will the market adapt? Either way, prospective hires and investors should weigh the potential upside against clear legal and financial risks.