# What happens after you get a Web3 grant, step by step

> What happens after you get a Web3 grant: agreement, KYC, payout setup, first tranche, milestone reviews, reports and follow-on funding, with real examples.

Last reviewed 2026-10-31. Dates are UTC.

What happens after you get a Web3 grant follows a similar sequence in most programs: you sign a grant agreement, pass KYC or KYB, set up a payout address and often receive a first tranche. Then you deliver milestones, each reviewed before the next payment, post public updates and file a final report. The paperwork alone can take weeks, so plan for it.

## Key takeaways

- As of 2026-10-31, 55 of the 99 programs in web3grant's directory pay in milestone tranches. First payments range from 5% (1inch's Aqua incubator) to 50% (Shutter DAO's Impact Pilot), and MoonDAO funds approved projects up front.
- Clocks start at approval: Project Catalyst's 2026 pilot (now closed) gave teams two weeks to finish KYC or KYB and a Statement of Milestones, and World One, an in-person San Francisco residency, gives ten days to sign terms and complete identity checks, sanctions screening and an IRS Form W-9.
- Reporting is often public: OpenSats asks for a progress report every 90 days, Rocket Pool and RootstockCollective at least monthly, and ESP grantees publish a public report at the end.
- Some grants come with token restrictions: Metaplex locks granted MPLX for one year, and Conflux's No Sale Rule bars selling Integration Grant CFX for one year unless otherwise agreed.

## The sequence at a glance

The steps after approval are broadly similar across the programs in our data, but the order of the first three varies: some programs run KYC before the agreement, others after.

| Step | What happens | Example timing |
| --- | --- | --- |
| 1. Offer | Approval email or public vote result | Days after the decision |
| 2. Agreement | Sign a grant agreement or award letter | Tezos Foundation: about 4 more weeks |
| 3. KYC or KYB | Identity checks on you or your company | Catalyst pilot: within 2 weeks |
| 4. Payout setup | Wallet address, multisig or bank details | With KYC |
| 5. First tranche | Up-front share of the grant | On signing or acceptance |
| 6. Milestones | Deliver, report, review, get paid | The length of the grant |
| 7. Final report | Close-out and any held-back amount | At the end |
| 8. Follow-on | Renewal or a larger program | After the final report |

## Step 1: The offer and the grant agreement

The grant agreement is the contract that turns an approval into money. It sets the scope, the milestones and how each is accepted, the payment schedule and currency, reporting duties, the license for the work, and what happens if things go wrong.

What you sign differs by program:

- **A grant agreement with milestones.** Analog sends an offer with milestones and completion criteria; DoubleZero's agreement lists deliverables, success criteria and timelines; Filecoin Open Grants has you sign an open-source grant agreement before any work starts, though its reviews have stalled since April 2026.
- **A formal letter or contributor agreement.** The Ethereum Foundation's ESP uses a formal grant letter (ESP had no open Wishlist or RFP items as of October 1, 2026), and dYdX a contributor agreement.
- **Something more than a grant.** The [Aqua Revenue Stream Incubator](https://www.web3grant.com/grants/1inch-aqua-incubator) has you sign a revenue-sharing agreement with the 1inch DAO, from the first dollar.

Deadlines often start here. Arbitrum's D.A.O. Grant Program gave grantees six months from KYC to complete their work; its Season 3 closed in March 2026, so check whether your own agreement sets a similar deadline. The [Tezos Foundation](https://www.web3grant.com/grants/tezos-foundation-grants) says its legal paperwork takes about four more weeks after acceptance.

Read the whole agreement before signing, especially the clauses on intellectual property, termination and repayment, and ask a lawyer if anything is unclear. Our guide to [Web3 grant agreements](https://www.web3grant.com/guides/web3-grant-agreements) goes through the usual clauses.

## Step 2: KYC or KYB

KYC (know your customer) is the identity check a funder runs before paying a person; KYB (know your business) is the same check for a company. Many programs in our directory run one before the first payment. ESP grantees complete identity verification, dYdX grantees complete KYC after signing their agreement, and the Stellar Community Fund requires every contributor to pass SDF's KYC or KYB check.

Have documents ready the day you are approved: a government ID, proof of address and, for a company, registration documents and owner details. Our guide to [KYC for crypto grants](https://www.web3grant.com/guides/web3-grant-kyc) covers what is asked, why, and the options for pseudonymous builders.

## Step 3: Payout setup

Payout setup means telling the funder where the money goes, and checking what you will actually receive. Many programs pay on-chain to an address you control:

- **A self-custodied wallet.** Metaplex DAO requires a self-custodied Solana wallet for the beneficiary.
- **A team multisig.** Livepeer's treasury usually pays a team or special-purpose entity multisig, and MoonDAO sets up a 3-of-5 multisig with its core signers for each funded project.
- **A plain address, no invoices.** Rocket Pool's grants committee, whose funds are tight (Round 41 declined every application), pays straight to a recipient address and cannot pay invoices; OpenSats asks for a bitcoin address when you sign.

Check the currency and any restrictions. As of 2026-10-31, 33 of the 99 programs in our directory can pay in stablecoins or USD, alone or as one option, and 39 pay only in a native or other token. Some tokens come locked: Metaplex locks granted MPLX for one year, Nym pays grants above 50,000 NYM through a vesting contract, and Conflux bars selling Integration Grant CFX for a year unless otherwise agreed. See [how to receive grant funds in crypto](https://www.web3grant.com/guides/receiving-grant-funds) and [grants paid in tokens](https://www.web3grant.com/guides/grants-paid-in-tokens).

## Step 4: First tranche and kickoff

A first tranche is the part of the grant paid before or at the start of work. Sizes vary widely, so read your schedule:

| Program | First payment | Then |
| --- | --- | --- |
| [Stellar Community Fund](https://www.web3grant.com/grants/stellar-community-fund) | 10% on acceptance | 20%, 30%, 40% per tranche |
| [Horizen](https://www.web3grant.com/grants/horizen-builder-ecosystem-fund) | 10% at approval | Privacy proof, audit and usage milestones |
| [Aqua incubator](https://www.web3grant.com/grants/1inch-aqua-incubator) | 5% | 10%, 35%, 50% (live and integrated) |
| [CKB Community Fund DAO](https://www.web3grant.com/grants/nervos-ckb-community-fund-dao) | Up to 20%, max $10,000 | Milestones, each confirmed by vote |
| [RootstockCollective](https://www.web3grant.com/grants/rootstock-collective-grants) | 20% to 30% | Tranches on proof of delivery |
| Shutter DAO Impact Pilot | 50% up front | 50% after review and a second vote |

Use the kickoff to agree the practical details with your contact: who reviews milestones, where reports go, and how to flag a delay. Write them down.

## Step 5: Milestone reviews

A milestone review is the funder's check that a deliverable is done before the matching payment goes out. You submit evidence, a reviewer checks it, and payment follows. Programs differ in who checks and how fast:

- **ESP:** a Grant Evaluator checks in at milestones.
- **CKB Community Fund DAO:** Stewards verify each milestone within 7 days, then a 3-day vote releases the payment unless the community rejects it.
- **TheDAO Security Fund:** an independent technical reviewer checks each milestone, and payment follows within 14 days of acceptance.
- **Monero CCS:** you post a report per milestone, and the Core Team releases escrowed XMR when it is accepted.
- **Stellar Community Fund:** you submit each tranche within 90 days, as its [Build Award handbook](https://stellar.gitbook.io/scf-handbook/scf-awards/build-award) describes.

Make each submission easy to approve: restate the acceptance criteria, then link the evidence for each one. When a milestone will slip, tell the reviewer before the date, not after. Our guide to [milestone-based grants](https://www.web3grant.com/guides/milestone-based-grants) covers how to set them up.

## Step 6: Public updates and reporting

Many Web3 grants expect you to work in public. The [OpenSats General Fund](https://www.web3grant.com/grants/opensats-general-fund) asks grantees to publish their work openly and send a progress report every 90 days. Rocket Pool's committee wants progress updates at least monthly, RootstockCollective monthly reports, and Zcash Community Grants forum updates before each milestone payment. On the [Akash community pool](https://www.web3grant.com/grants/akash-community-pool), funded teams post status updates and record their spending in a Community Pool Spend Reporting folder on GitHub; note that no outside team has won an Akash vote since August 2025.

Keep reports short, dated and linked: what was planned, what shipped, what changed, what is next. Our guide to [grant milestone reports](https://www.web3grant.com/guides/grant-milestone-reports) has a template.

## Step 7: Final report and close-out

The final report closes the grant and sometimes releases the last payment. ESP grantees publish a public report at the end. Kusama Vision bounty recipients file a final report. MoonDAO projects file one and can then earn retroactive rewards by community vote.

Some programs hold money back until results show. RootstockCollective has kept about 30% of each grant until a post-completion impact review since September 2026. Cardano's 2026 Catalyst pilot paid 20% only if usage held about two months after launch; that pilot closed in August 2026 with no next round announced.

## Step 8: Follow-on funding

A delivered grant is the best evidence for the next one. [Circle Developer Grants](https://www.web3grant.com/grants/circle-developer-grants) let you apply again once you finish your last milestone, Spiral renews many of its grants, and Btrust has started giving long-term support to proven education programs so they don't reapply every year. Starknet's Seed Grants check in with grantees three months after funding, and teams with users can move up to Starknet's Growth Grants of $25,000 to $1M in STRK.

Not every program allows quick repeats: VeBetter makes past grantees wait six months from their first disbursement, and it processed no applications in Q2 2026. Our guide to [funding after the grant ends](https://www.web3grant.com/guides/funding-after-the-grant-ends) covers sustainability beyond grants.

## What about taxes?

Grant income may be taxable where you live, and token grants raise questions about when and at what value income is counted. Tax treatment depends on your country and situation, so keep records of every payment (date, amount, token, value) and ask a tax professional. Our guide [are crypto grants taxable](https://www.web3grant.com/guides/are-crypto-grants-taxable) explains the principles without giving advice.

## FAQ

### How long after approval do you receive grant money?

How long it takes to receive grant money after approval depends on the paperwork. Programs with an up-front tranche, such as the Stellar Community Fund's 10% on acceptance, pay part of the grant as soon as onboarding is done. Others take longer: the Tezos Foundation says legal paperwork takes about four more weeks after acceptance. Ask your program contact for the expected date at kickoff.

### What happens if you miss a grant milestone?

Missing a grant milestone often just delays the matching payment, but the grant agreement decides. Tell the reviewer before the deadline, explain the cause and propose a new date or a smaller scope. Some programs have hard limits, such as the Stellar Community Fund's 90 days per tranche, so check your agreement's terms on delays and termination.

### Do you have to publish grant reports publicly?

Many Web3 grant programs require public reports. OpenSats grantees publish their work openly and report every 90 days, ESP grantees publish a public report at the end, and Akash community pool recipients record their spending on GitHub. Check your agreement for what must be public, and write every report as if the community will read it.

### Can a grant be taken back after you receive it?

A grant can sometimes be stopped or partly reclaimed if the grantee breaks the agreement, for example by not delivering or by misusing funds. The exact terms sit in the grant agreement's termination and repayment clauses, which differ by program. Read them before signing, keep clear records of how funds were spent, and ask a lawyer if a clause is unclear.

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From web3grant: https://www.web3grant.com/guides/after-you-win-a-web3-grant. Program details change often: confirm on each program's official site before applying.