Crypto job compensation changes as equity gains option – survey

According to a study by Variant and Union Square Ventures, recent hires in the crypto industry tend to acquire equity rather than tokens. The two crypto companies surveyed the businesses in their investment portfolios to understand the emerging trends in 2023.

Based on data gathered from interviews with employees at 32 Web3 startups, the study found that unlike in the past, when crypto companies tried to compensate employees with tokens instead of equity, now the opposite is preferred.

According to the survey, Web3 organizations have offered token-based compensation to employees since 2013, and did not offer equity compensation before 2018. As of 2013, less than 40% of surveyed employees received equity, while 50% received tokens. In the year By 2023, this trend has reversed, with new hires three times more likely to receive equity than tokens.

While it may be too early to define this as a trend, the data suggests that startups are experimenting with new incentive methods that are less dependent on tokens than in previous crypto market cycles.

However, 50% of survey respondents indicated that they primarily compete with other crypto startups for new hires, while 25% said their main competition is from Web2 firms.

Research suggests that recruiting in the Web3 space is more accessible than attracting newcomers to the crypto industry during bear markets.

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Engineers comprise the majority of employees at the startups surveyed, accounting for 50% of employees. These engineers receive higher pay than their colleagues within the company and their professional counterparts outside of the crypto sector.

“Senior-level Web3 engineers earn a 23% premium, and entry-level engineers earn 27% more than their counterparts in the general market,” says the study.

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