Introducing Token Tables

October 18, 2022

Tuesday, October 18th 2022

We are excited to announce Token Tables (Early Access), our newest product to help Web3 companies manage, track and distribute tokens on one platform. Companies, DAOs, and protocols can now access a full set of features to manage their token cap tables from idea to launch and scale.

We are testing this with a number of leading protocols in Web3 already. Sign up to get early alpha access on Pulley.

Tokens are uniquely challenging to manage

Pulley works with over 2,500 companies to manage their token and equity cap tables. And we noticed a critical difference between the two.

While a company’s equity steadily grows over a long period of time (the average time to go public is now 12 years), tokens are designed to launch in a matter of months or years in order to involve the community in governance. Many of the issues that mature equity companies face (tax withholdings, settlements, variations in compensation, etc.), token-issuing protocols experience much earlier on in their evolution.

Web3 companies and protocols are on a significantly accelerated timeline relative to traditional companies.

Spreadsheets make mistakes

Web3 startups have to manage complex accounting and compliance issues without the proper tools to help. Most are still using spreadsheets to manage this mission critical task.

Consider a protocol that has a hundred employees and utilizes a token. The company receives a monthly token distribution for development rewards. The company then compensates employees through restricted token units (RTUs).

In order to do this, the company has to track hundreds of vest events, token prices, tax bases, and wallet addresses. Their spreadsheet might look something like this:

The process is tedious and error-prone. Furthermore, the company could face penalties or fines if an incorrect amount of tokens are withheld or if tokens are transferred to the wrong person.

An industry that is at the forefront of innovation is still run on the back of spreadsheets.

Cap Table 3.0

Pulley is the only platform that can support Web3 companies at every stage of growth: from figuring out token allocations to facilitating distributions.

Companies and protocols spend upwards of $100K annually on valuations and several weeks out of each year handling distributions.

Pulley takes minutes to manage token compliance and distribution. You have access to a complete ledger for future accounting and taxes, and employees are given login portals to track their token/equity portfolios. We also have an in-house valuations team that specializes in tokens, making Token 409as far more affordable and accurate.

At a glance, some of the token functionality Pulley supports:

Function How it’s done today On Pulley
Planning allocations Advisors, consultants, excel Track allocations, tokens remaining, emissions
Managing legal documents Legal counsel, Dropbox, Docusign Draft, issue and sign token agreements on platform
Tracking vesting Manually in excel Automatically track custom vesting/settlements
Updating holder information Store across multiple systems like payroll and excel Have a shared single source of truth for all information
Calculating tax withholdings Manually research & calculate, verify in payroll Produce tax estimates for token agreements
Getting token valuations Regularly pay external providers ($20-30K) Included as need
Communicating with holders Email, excel, mailmerge, other Employees have their own personal portal
Distributing tokens Custom built solution Transactions are prepared according to agreements
Reporting & accounting N/A Full custom reporting included as needed

Try Token Tables

We’re building for a future where tokens fundamentally change the ownership paradigm. One where you can jumpstart network effects through early community buy-in and unlock contributor liquidity in years, not decades.

Sign up to start on Pulley. Stay tuned for more updates and token guides, including:

  • Support for multiple chains
  • Templates for token fundraising and compensation agreements
  • On-chain cap tables
  • …and much, much more