Crypto News- Variant and Union Square Ventures recently conducted a survey shedding light on the shifting landscape of job compensation preferences within the crypto industry. In a departure from the norm, the findings indicate that fresh talent entering the crypto space is showing a clear inclination towards equity as opposed to the conventional trend of receiving tokens as compensation. The survey, drawing insights from 32 Web3 startups within their investment portfolios, reveals a significant pivot in preference starting in 2023, with a threefold increase in new hires opting for equity over tokens.
Shift in Crypto Job Compensation Trends: Equity Outpaces Other Forms of Remuneration
Analyzing historical data, it becomes apparent that Web3 firms had predominantly employed token-based compensation structures since 2013. However, the prevalence of equity offerings gained prominence notably after 2018. Prior to this shift, the survey highlights that less than 40% of surveyed employees received equity before 2018, while approximately 50% were compensated with tokens. This recent transformation suggests a potential experimentation phase among startups, exploring novel incentive structures that reduce reliance on tokens compared to prior market cycles.
Crypto Compensation 2023: The Equity Advantage
While caution is urged in labeling this as an established trend, the survey underscores the ongoing evolution in compensation strategies within the dynamic crypto sector. Half of the surveyed respondents noted direct competition with other crypto startups for fresh talent, while 25% identified Web2 organizations as their primary rivals.
Notably, the survey reveals an intriguing aspect of recruiting dynamics within the Web3 space – it appears to be more accessible during bear markets compared to attracting newcomers to the broader crypto industry. Engineers constitute the majority, making up 50% of the staff in the surveyed startups. Interestingly, these engineers receive more substantial compensation compared to their counterparts both within the company and in similar roles outside the crypto sector. The survey emphasizes that senior-level Web3 engineers enjoy a 23% premium, while early-career engineers earn 27% more than their counterparts in the general job market.
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