Grants and the funding of the ecosystem
Many foundations use their funds mainly for grants, with which the Ethereum Foundation, the Web3 Foundation and others support developers, researchers and projects that build on their protocols. The grants may be paid in crypto-assets or in fiat money, to individuals or to companies anywhere in the world. Although they serve the purpose of the foundation, which is the development of the protocol and its ecosystem, they raise questions of control and compliance. The foundation must establish that the grant serves its purpose, that the recipient is identified and not subject to sanctions and that the funds are used as agreed.
The grant practice, which links the foundations of Zug to a global community of developers, explains how a foundation with a small team in Zug can have a large effect on a technology that is developed in many countries. It also explains why the foundations are an attractive client for the professional services of the canton, since their grant programmes require legal, tax and compliance work on a continuing basis.
For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of September 2025.