A recent compensation survey has raised serious concerns regarding talent retention and growth within the Ethereum network. According to a report from Protocol Guild shared with The Defiant, Ethereum’s core developers are reportedly earning 50-60% less than competing offers available elsewhere.
The survey, which gathered insights from over 100 contributors, revealed that the median salary for these developers stands at approximately $140,000. In stark contrast, salaries for comparable positions at other blockchain projects exceed $300,000, often accompanied by token or equity incentives. Adding to the alarming statistics, many Ethereum contributors reported receiving no equity or token grants at all, presenting a stark disparity for talent.
This compensation gap has become increasingly concerning, as nearly 40% of surveyed developers indicated they had received job offers from rival blockchains and Layer 2 networks in the past year. The average external offer was estimated at around $359,000, more than double what Ethereum contributors earn on average today.
Protocol Guild has raised a red flag over the implications of these salary discrepancies, stating that inadequate compensation threatens not just talent retention but also the overall progress of Ethereum’s technical roadmap and its long-term credibility. The report urges the wider Ethereum community to address this issue, emphasizing that the network’s future hinges on attracting and retaining skilled developers.
To counter these challenges, several projects within the Ethereum ecosystem, including EigenLayer, Etherfi, Taiko, and Puffer, have initiated a “1% Pledge.” This initiative involves donating a portion of their token supply to Protocol Guild, designed to enhance developer compensation and reduce turnover. Notably, investment management firm VanEck recently announced its commitment to donate 10% of profits generated from its Spot Ether ETF to Protocol Guild, further supporting these efforts.
Since its inception in 2022, Protocol Guild has allocated over $32 million to Ethereum’s core developers through various donations and pledges. Over the past year, the typical member received around $66,000 from this funding, which constituted nearly one-third of their total compensation. A significant 59% of members reported that this additional funding was “very or extremely important” to their ability to continue working on Ethereum.
The stakes for Ethereum are high. The network aspires to secure $1 trillion in value and currently supports millions of users and thousands of decentralized applications, with leading DeFi platforms like Lido and Aave contributing significant total value locked (TVL) assets. Ethereum’s native token, Ether (ETH), is currently trading at $4,350, reflecting an 88% increase over the past year.
As the Ethereum community grapples with these workforce challenges, the need for equitable compensation and recognition of developer contributions has become more critical than ever in ensuring the network’s sustained growth and innovation.
