A recent survey conducted by Variant and Union Square Ventures delved into the compensation trends within the crypto industry, particularly observing how employees are remunerated in terms of equity and tokens. The survey aimed to capture emerging trends prevalent in 2023 by gathering insights from 32 Web3 startups within their portfolios.
Contrary to the past norm where cryptocurrency companies commonly compensated employees with tokens rather than equity, the survey findings indicate a notable shift. Earlier practices showed a preference for providing token-based compensation since 2013, with no companies offering equity before 2018. However, the data now reveals a shift, with recent hires being three times more likely to receive equity than tokens, marking a noticeable reversal of this trend. While it's too early to label it as an established trend, it suggests that startups are exploring new incentive mechanisms that are less reliant on tokens compared to previous crypto market cycles.
Interestingly, half of the survey respondents highlighted that their primary competition for new hires comes from other crypto startups, while 25% identified Web2 organizations as their main competitors in attracting talent.
Moreover, the survey unveiled that recruiting within the Web3 space is relatively easier compared to attracting new individuals to the crypto industry, especially during bearish market conditions. Engineers constitute the predominant workforce, accounting for 50% of employees across the startups surveyed. Additionally, these engineers command higher compensation within the crypto space compared to their counterparts both within and outside the industry. The survey specifies that "Senior Web3 engineers earn 23% more than their general market peers, while early-career engineers earn 27% more."
