A new compensation survey raises concerns about both talent retention and growth for the network. <\/p>\n
Ethereum\u2019s<\/a> core developers are earning far less than they could make elsewhere, according to a new report by Protocol Guild, shared with The Defiant. <\/p>\n The survey of more than 100 contributors found that Ethereum core developers earn 50-60% less than market offers. Ethereum is currently the world\u2019s largest blockchain by total value locked (TVL) in decentralized finance (DeFi), with nearly $110 billion currently held across Ethereum-based protocols, according to DefiLlama<\/a>.<\/p>\n Protocol Guild<\/a> is a decentralized group that funds Ethereum ecosystem developmental, backed by prominent Ethereum-based projects like EigenLayer and Etherfi.<\/p>\n 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.<\/p>\n That gap is creating pressure as nearly 40% of the protocol\u2019s 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.<\/p>\n Protocol Guild warned in its report that the pay gap poses a growing threat to the network. \u201cInadequate compensation is a risk to talent retention, the progress of Ethereum’s technical roadmap, and long-term credible neutrality,\u201d the report reads.<\/p>\n The group also called on the wider Ethereum community to address the gap, noting that the network\u2019s progress depends on keeping developers fairly compensated and onboard.<\/p>\n One effort already in place is the \u201c1% Pledge,\u201d 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%<\/a> of the profits generated by its Spot Ether ETF to Protocol Guild.<\/p>\n This funding is then used to boost pay, reduce turnover, and keep Ethereum\u2019s upgrades<\/a> on track. Since launching in 2022, Protocol Guild has distributed over $32 million to Ethereum\u2019s core developers through donations and pledges, with the typical member receiving $66,000 over the past 12 months, the report noted. <\/p>\n That extra funding made up almost one-third of total compensation for many contributors, with 59% of members claiming it was \u201cvery or extremely important\u201d to their ability to keep working on Ethereum.<\/p>\n The report concluded by emphasizing the high stakes for Ethereum, as the network\u2019s ambition is to secure $1 trillion in value<\/a>, and it already serves millions of users and supports thousands of decentralized applications \u2013 including major DeFi protocols such as Lido ($38 billion TVL) and Aave ($41 billion TVL).<\/p>\nGrowing Risk to Network Development<\/h2>\n