Quick Takeaways
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Compensation Disparity: Ethereum’s core developers earn 50-60% less than peers in similar roles, with median salaries around $140,000 compared to $300,000 at rival projects.
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Lack of Equity: Most developers reported no equity or token exposure, while competitors offer median allocations of 6.5%, intensifying the compensation gap.
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Job Offers and Pressure: Nearly 40% of developers have received outside job offers, averaging $359,000, with some offers reaching as high as $700,000, highlighting retention challenges.
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Importance of Protocol Guild: The Protocol Guild has distributed over $33 million, providing crucial financial support to developers, raising average compensation from $140,000 to $207,121, which is vital for retaining talent in the Ethereum ecosystem.
Ethereum Developers Earn 50% Less Than Industry Peers: New Report Reveals
A recent report from Protocol Guild highlights a troubling pay gap for Ethereum’s core developers. According to the survey, 111 out of 190 members reported earning 50% to 60% less than their counterparts in similar roles. This disparity raises concerns about talent retention and the future of Ethereum.
The findings detailed that the median salary for Ethereum developers sits at around $140,000. In contrast, rival projects offer an average of $300,000. Breaking it down further, client developers earn about $130,000, while researchers make an average of $215,000. Coordination roles also reflect similar low pay at $130,000.
Moreover, the report revealed that most developers lack equity or token exposure. A mere 37% received any form of equity, while their peers at competing organizations received median equity shares of 6.5%. These figures ranged significantly, showing that even established positions offered cofounders 10% to 30%, while early employees enjoyed 0.1% to 3%.
Notably, nearly 40% of developers reported receiving job offers elsewhere in the last year. They disclosed a total of 108 offers across 42 individuals, with average packages soaring to $359,000. Some developers even faced offers as high as $700,000, signaling a pressing need for higher compensation within the Ethereum ecosystem.
To combat this pay disparity, Protocol Guild has emerged as a crucial support system for developers. Established in 2022, the group has garnered backing from the “1% Pledge,” which includes donations from projects like EigenLayer, Ether.fi, Taiko, and Puffer. Since its inception, Protocol Guild has distributed over $33 million in support. On average, each member received $66,000, significantly contributing to their total compensation.
Survey responses indicated that this financial support played a vital role in retaining talent. About 59% of participants considered the Guild’s funding “very” or “extremely important” to continue their work on Ethereum. With the network securing nearly $1 trillion in value and powering thousands of applications, ensuring fair compensation becomes crucial for ongoing development.
Protocol Guild emphasized the urgency of aligning developer pay with industry standards. Doing so not only helps retain skilled talent but also ensures the long-term stability and growth of the Ethereum ecosystem.
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