Ethereum Devs Earn 50-60% Less Than Market Rates: Protocol Guild – Crypto News – Crypto News
Connect with us
Ethereum Devs Earn 50-60% Less Than Market Rates: Protocol Guild Ethereum Devs Earn 50-60% Less Than Market Rates: Protocol Guild

De-fi

Ethereum Devs Earn 50-60% Less Than Market Rates: Protocol Guild – Crypto News

Published

8 months ago

on

A new compensation survey raises concerns about both talent retention and growth for the network.

Ethereum’s core developers are earning far less than they could make elsewhere, according to a new report by Protocol Guild, shared with The Defiant.

The survey of more than 100 contributors found that Ethereum core developers earn 50-60% less than market offers. Ethereum is currently the world’s largest blockchain by total value locked (TVL) in decentralized finance (DeFi), with nearly $110 billion currently held across Ethereum-based protocols, according to DefiLlama.

Protocol Guild is a decentralized group that funds Ethereum ecosystem developmental, backed by prominent Ethereum-based projects like EigenLayer and Etherfi.

Median salaries for surveyed Ethereum devs came in around $140,000, compared to salaries of more than $300,000 (plus tokens or equity) for comparable roles at other projects. Moreover, the median Ethereum contributors receive no upside at all, with the typical token or equity grant reported as $0.

That gap is creating pressure as nearly 40% of the protocol’s developers said that they received outside job offers in the past year, many from rival blockchains or Layer 2 (L2) networks. Protocol Guild estimates the average outside offer came in at about $359,000, more than double what most Ethereum contributors earn today.

Growing Risk to Network Development

Protocol Guild warned in its report that the pay gap poses a growing threat to the network. “Inadequate compensation is a risk to talent retention, the progress of Ethereum’s technical roadmap, and long-term credible neutrality,” the report reads.

The group also called on the wider Ethereum community to address the gap, noting that the network’s progress depends on keeping developers fairly compensated and onboard.

One effort already in place is the “1% Pledge,” where projects in the ecosystem such as EigenLayer, Etherfi, Taiko and Puffer donate a small portion of their token supply to Protocol Guild. In 2023, VanEck, a global investment manager, announced that it would donate 10% of the profits generated by its Spot Ether ETF to Protocol Guild.

This funding is then used to boost pay, reduce turnover, and keep Ethereum’s upgrades on track. Since launching in 2022, Protocol Guild has distributed over $32 million to Ethereum’s core developers through donations and pledges, with the typical member receiving $66,000 over the past 12 months, the report noted.

That extra funding made up almost one-third of total compensation for many contributors, with 59% of members claiming it was “very or extremely important” to their ability to keep working on Ethereum.

The report concluded by emphasizing the high stakes for Ethereum, as the network’s ambition is to secure $1 trillion in value, and it already serves millions of users and supports thousands of decentralized applications – including major DeFi protocols such as Lido ($38 billion TVL) and Aave ($41 billion TVL).

Ethereum’s native token Ether (ETH) is currently trading at $4,350, up 88% over the past year, according to The Defiant’s price page.

Related Topics:
Continue Reading

Trending