A recent report reveals that Ethereum’s core developers are receiving compensation significantly lower than the industry norm. A recent survey revealing that a significant majority are earning between 50% to 60% less than their counterparts in comparable positions. Surveyed Ethereum developers reported median salaries of approximately $140,000, while competing projects presented offers averaging $300,000. The report provided insights into compensation based on specific roles, revealing average salaries of $130,000 for client developers, $215,000 for researchers, and $130,000 for coordination positions.
Furthermore, these contributors indicated that they do not receive any equity or token exposure from their employers. The overall allocation stood at $0, with merely 37% of participants reporting any receipt of funds. Conversely, final-stage offers extended to counterparts at competing firms over the last year featured a median equity or token share of 6.5%. Allocations for cofounders typically range from 10% to 30%, while early employee grants fall between 0.1% and 3%. The disparity has intensified, with nearly 40% of those surveyed reporting they have received external job offers over the last year. A total of 108 disclosures were made involving 42 individuals, with the average compensation package hitting $359,000. Certain developers reported receiving offers reaching up to $700,000 to relocate to different opportunities.
Founded in 2022, Protocol Guild has emerged as a crucial support system for developers in the space. Supported by the “1% Pledge” from initiatives such as EigenLayer, Ether.fi, Taiko, and Puffer, the collective has allocated more than $33 million since its inception. VanEck committed 10% of profits from its spot Ether ETF to the initiative in 2023. In the past year, the typical Guild member garnered $66,000 from this funding, with the median allocation standing at $74,285. The support accounted for almost a third of the total annual compensation for numerous employees, with the average pay increasing from $140,000 to $207,121. Survey responses indicate the significance of this additional support, with 59% of participants rating Guild funding as “very” or “extremely important” for their continued work on Ethereum.
The network has achieved a remarkable milestone, securing nearly $1 trillion in value, catering to millions of users, and enabling thousands of applications that depend on crucial upgrades. Protocol Guild has raised concerns that insufficient compensation jeopardizes Ethereum by hindering developer retention, delaying advancements on the roadmap, and endangering long-term neutrality. The group highlighted the significance of aligning compensation with market rates to retain talent and secure the future growth of the ecosystem.