The crypto industry has long held the belief that cryptocurrencies will eventually have a significant role in the global financial and payments system. However, a recent study conducted by Pantera Capital, a digital-asset investment firm, reveals that currently, the majority of crypto-industry employees still prefer to receive their salaries in government-issued currencies, commonly known as “fiat”.
According to the study, a striking 97% of individuals in the nascent crypto industry are paid a base salary in fiat, while only 3% receive their earnings in cryptocurrencies. The data was gathered from 1,046 respondents, offering valuable insights into the current trends in the industry’s compensation landscape.
Interestingly, among those who opted for crypto payments, the vast majority chose dollar-linked stablecoins such as USDC and USDT, with only 13% selecting bitcoin as their preferred cryptocurrency. This preference for stablecoins can be attributed to their lower volatility compared to other cryptocurrencies, making them a safer choice for regular income.
In terms of compensation, the study revealed that the median pay for 570 surveyed engineers globally was $120,000, with North American engineers earning $193,000, marking a 1.5% increase compared to the previous year. In contrast, engineers in traditional tech or “Web2” roles were estimated to earn around $166,100 in North America.
Furthermore, the report noted that senior engineers in Web3 roles tend to earn slightly more than their counterparts in Web2 roles, indicating that the crypto industry offers competitive salaries for experienced professionals.
Remote work also seems to be a prevalent feature in the crypto industry, with approximately 88% of roles being remote, as opposed to an estimated 28% in traditional Web2 roles. The global distribution of crypto-related jobs makes it unlikely for the industry to shift back to office-based work, as highlighted by the study.
Executives in the crypto industry earn between $147,363 and $335,400, depending on the stage of their respective companies. Additionally, the study found that 20% of respondents reported receiving an initial package of token incentives, with non-executive positions averaging $89,000 and executives receiving an average of $1.3 million. However, it is important to note that the volatile nature of crypto markets means that the actual value of these incentive packages can fluctuate significantly.
The Pantera report emphasizes that it is crucial to consider the vesting schedule, valuation, and timing of the token incentives. Without this information, the figures can easily be taken out of context, leading to misunderstandings regarding the true value of these packages.
While the crypto industry remains predominantly salaried in fiat currencies, it is clear that there is still confidence in the potential of cryptocurrencies to play a more substantial role in the future of finance. As the industry continues to evolve, it will be interesting to monitor how compensation structures adapt to reflect this changing landscape.
