In a revealing new report, Ethereum core developers are finding themselves significantly undercompensated compared to prevailing market standards, despite their critical role in maintaining the security and functionality of the world’s second-largest blockchain. The Protocol Guild, which funds approximately 190 Ethereum core contributors, disclosed this compensation data, showing that the salaries for these developers are 50% to 60% lower than their potential earnings in other sectors.
The report, drawing input from 111 contributors across 11 organizations, marks the most comprehensive analysis of salary structures within Ethereum’s core ecosystem to date. The findings indicate that the median base pay for these developers is approximately $140,000, while competing market offers average around $300,000, peaking at an astonishing average of $359,000. This stark contrast emphasizes the financial sacrifices core developers are making for the ethos of Ethereum.
Notably, one developer disclosed turning down a lucrative offer of $700,000, choosing instead to continue their work within Ethereum’s core, further illustrating the commitment many in the community have toward the project, despite the financial drawbacks. The report highlights a persistent issue: unlike commercial ventures in the cryptocurrency space which can offer tokens or equity, many organizations contributing to Ethereum’s core software are structured as non-profits, academic institutions, or foundations that do not have the capacity to provide such incentives. In fact, the survey found that only 37% of contributors benefit from equity or token grants, leaving a substantial majority without any potential for financial gain beyond their salaries.
This situation puts Ethereum at a competitive disadvantage as other blockchain networks ramp up their recruitment efforts. The report noted that nearly 40% of surveyed contributors had received final job offers from other companies in the past year, particularly from rival Layer 1 and Layer 2 platforms with the ability to offer higher financial packages.
Compensation structures also varied among roles within the community. Researchers reported a higher median cash compensation at $215,000, while client developers and coordinators earned around $130,000. Additionally, those with seven to eight years of experience in the field had a median income of $212,000, dropping to $150,000 for developers with nine or more years of experience.
The implications of these disparities are significant, raising concerns that ongoing underpayment could lead to higher turnover rates, weakened institutional knowledge, and slowed progress on Ethereum’s development roadmap. This could also expose independent teams to acquisition by larger entities or influence that may not align with the community’s values.
Despite these challenges, many developers express commitment beyond financial incentives, citing dedication to Ethereum’s mission of decentralization, censorship resistance, and credibility as their primary motivations. Protocol Guild’s report serves as a call to action, urging ecosystem funders to recognize the issue of undercompensation and to seek scalable solutions. Without addressing these concerns, the Ethereum community risks losing critical talent necessary for sustaining its infrastructure and advancing its overarching goals.
