Skip to main content
Back to Pulse
TechCrunch

Are AI tokens the new signing bonus or just a cost of doing business?

Read the full articleAre AI tokens the new signing bonus or just a cost of doing business? on TechCrunch

What Happened

Maybe tokens really will become the fourth pillar of engineering compensation. But engineers might want to hold the line before embracing this as a straightforward win.

Our Take

Honestly? Engineers should pump the brakes. Tokens sound like free money until market conditions shift or the startup tanks. They're illiquid, volatile, and way harder to negotiate or cash out than salary. This isn't innovation—it's risk-shifting. Companies get to compress cash comp while claiming they're generous with upside.

Sure, some engineers will get rich. But most will hold tokens that become worth nothing. And when they do become liquid, they're usually heavily taxed. It's a signing bonus for a market that doesn't exist yet. Hold the line. Push for cash.

What To Do

Before accepting token compensation, ask for liquidity timeline, vesting acceleration triggers, and fair-value pricing methodology in writing.

Cited By

React

Loading comments...