Grant & Token Distribution

Tax-Compliant Token Distribution Platform for Web3 Projects

Franklin's Grant & Token Distribution platform enables Web3 projects to run tax-compliant grant programs, hackathon rewards, airdrops, and token distributions at scale. The solution handles the unique compliance challenges of distributing tokens to large recipient pools while maintaining proper tax reporting.

Automated Compliance Workflow

KYC and Tax Form Collection

The platform streamlines the entire distribution workflow from participant onboarding through final token delivery. Key features include automated KYC and tax form collection where recipients complete necessary identity verification and submit W9s or W8s through a self-service portal. Franklin ensures proper documentation before any tokens are distributed, protecting projects from compliance risks.

Onchain and Offchain Distributions

The system supports both onchain and offchain distributions, allowing projects to send tokens directly to recipient wallets via smart contracts or distribute through Franklin's custody infrastructure. Multichain support enables grants on Ethereum, Arbitrum, Polygon, Optimism, and other networks without requiring projects to manage multiple deployment processes.

Bulk Execution & Tax Reporting

Scale and Gas Efficiency

Bulk execution capabilities allow distributing tokens to hundreds or thousands of recipients in a single transaction batch, significantly reducing gas costs and administrative overhead. The platform automates the calculation of fair market value at distribution time for proper tax reporting.

IRS Compliance

Franklin generates compliant 1099-MISC forms for U.S. recipients who receive tokens above reporting thresholds, handling all IRS filing requirements. For international recipients, the platform manages W8 forms and ensures proper withholding where applicable.

Accounting Integration

Accounting integration provides detailed reporting on token distributions with USD valuations, distribution dates, and recipient information for financial record-keeping. The platform maintains comprehensive audit trails showing exactly when tokens were distributed, to whom, and at what value.

Use Cases

The solution is used by DAOs, protocols, and Web3 companies running:

• Hackathon rewards and bounty programs
• Retroactive funding rounds
• Contributor rewards and grants
• Community incentive programs
• Airdrop campaigns

Pricing: $15 per person paid per month, making it cost-effective even for large-scale distribution programs.