A recent report by Protocol Guild indicates that Ethereum’s core developers are earning significantly less than their counterparts in the broader technology sector. The survey, which garnered responses from 111 of the 190 Guild members, revealed that many developers are making between 50% and 60% less than industry averages for similar roles.
In detail, the median salary for surveyed Ethereum developers was approximately $140,000, starkly contrasted by offers averaging around $300,000 at competing firms. The report provided a breakdown of pay by specialization, showing average earnings of $130,000 for client developers, $215,000 for researchers, and $130,000 for those in coordination roles.
Moreover, the study highlighted a concerning trend where many developers reported a complete lack of equity or token exposure from their employers, with the majority receiving zero allocation. In comparison, final-stage offers to competing personnel typically included a median equity or token share approximating 6.5%, with allocations for cofounders ranging from 10% to 30% and early employee grants ranging from 0.1% to 3%.
The compensation gap has created mounting pressure within the community, as almost 40% of respondents reported having received job offers from outside Ethereum in the past year. Across 42 individuals, a total of 108 job offers were disclosed, with an average package amounting to $359,000. Some developers even indicated offers reaching as high as $700,000 to switch organizations.
In response to the growing disparity, Protocol Guild—established in 2022—has emerged as a valuable resource for developers. Supported by the “1% Pledge” from several projects, including EigenLayer, Ether.fi, Taiko, and Puffer, the initiative has disbursed over $33 million since its inception. In 2023, VanEck also committed 10% of profits from its spot Ether ETF to the cause.
Over the past year, the average amount received by Guild members through this funding stood at $66,000, with the median distribution at $74,285. This financial support represented nearly one-third of many developers’ total annual compensation, resulting in a mean pay increase from $140,000 to $207,121. Notably, 59% of respondents deemed this Guild funding as “very” or “extremely important” for their continued work within the Ethereum ecosystem.
With Ethereum currently securing nearly $1 trillion in value and supporting millions of users while empowering thousands of applications, Protocol Guild has raised alarms over the risk posed by inadequate compensation. They warn that such disparities could jeopardize developer retention, impede progress on the Ethereum roadmap, and threaten the network’s long-term neutrality. The organization emphasizes that aligning compensation with market rates is crucial for retaining talent and ensuring the long-term growth of the ecosystem.
