What happened?
A report from Protocol Guild, a collective that funds Ethereum core contributors, shows that these developers earn 50-60% less than their market value while maintaining vital infrastructure for the world’s second-largest blockchain. Despite the vast disparity in income, with median pay of $140,000 compared to a market average of $359,000, they continue their work on Ethereum.
Who does this affect?
This situation impacts all Ethereum core developers and indirectly affects the entire Ethereum community. Many of these developers lack the financial benefits like equity stakes or token allocations often received in other industries. Only 37% of surveyed developers received any form of equity or token grants, making it difficult for entities employing them, such as non-profits, academic institutions, or foundations, to provide comparable incentives.
Why does this matter?
This pay gap could potentially threaten the future of Ethereum. Persistent underpayment risks leading to higher developer turnover, slowed progress on upgrades, and vulnerability to acquisition. If Ethereum is unable to retain talent due to insufficient compensation, it may struggle to maintain its blockchain infrastructure, impacting the broader cryptocurrency market.