Framework has always put the promotion of the cryptocurrency industry as the focus of all aspects of business development. In order to achieve this goal, Framework continues to experiment, providing many meaningful resources for the entire cryptocurrency community. Despite the massive influx of talent into Web3 last year, the hiring process in this nascent field remains piecemeal and opaque for companies and potential employees. Therefore, Framework has compiled a salary guide for the cryptocurrency community based on data obtained from its biannual salary survey. This report collects comprehensive compensation data for startups backed by venture capital, so it is of great reference value for groups who want to enter the cryptocurrency field.
While founders under The Framework Tent will be able to use their Founder Pass NFTs for more complete data and reporting, this article will provide the public with some key clues. This data is valuable to the following groups:
- Founders who are hiring early employees and scaling their teams
- Job seekers apply for jobs or repeatedly argue with boss about salary
- Student Party Considering Crypto-Related Jobs
Research methods and definitions of several keywords
- Framework surveyed 18 companies in its portfolio ranging in size from 2 to 80 employees. As such, these figures represent compensation for early- and mid-stage companies, often backed by VC funds.
- While not broken down into specific sectors, Framework’s portfolio is mostly DeFi, infrastructure, and Web3 gaming companies.
- In this report, “Executives” refers to the CXO title and the heads of key functions (Engineering, BD, Operations, etc.). “Engineers” represents engineering and technical research roles, and “Business Operations” covers all non-executive, non-engineering roles.
- All data was collected in May and June 2022. The data comes from enterprises (hereinafter referred to as “Responded Enterprises”), decentralized protocols and DAOs (hereinafter referred to as “Responded Projects”).
Fiat is still king in the U.S., but stablecoins have gained a lot of influence internationally
More than 80% of companies are headquartered in the United States, and these respondents use the US dollar as their main payment method, which is usually to ensure that employees can more easily handle salary income and consumption, and more easily distribute benefits to employees, after all, the general situation None of the following welfare providers will support stablecoins. But there are also companies that pay wages in USDC to labor contracts or even full-time employees.
For international teams, it is not so unified. About 50% of the companies surveyed offer USDC or other stablecoins as the primary form of compensation for all employees, and almost all companies offer USDC payment options for both contract and full-time employees. About half of international companies are denominated in U.S. dollars, while the other half are denominated in other local currencies.
The specific model of equity and token distribution is determined by the stage of the company and the structure of the entity.
- Tokens provide holders with the opportunity to utilize and participate in social networks and DAOs. Equity represents ownership in a centralized company or entity. Both tokens and equity can be used to incentivize and compensate contributors and employees in a network or company. However, the distribution of tokens and equity can be very different. While the survey shows that tokens and equity compensation are highly dependent on individual companies, some valuable information can still be gleaned from them.
- The U.S.-based team is unlikely to launch a coin, nor does it even plan to launch a coin in the future. Over 25% of projects internationally have launched tokens, and most are considering launching in the future. Early-stage companies are far less likely to launch tokens.
- For decentralized networks or DAOs, token ownership (vs. equity) is the standard way to incentivize employees.
- Comparing companies offering equity and token ownership, the equity offering is approximately twice the token ownership percentage.
- For example, a compensation package for an early software engineer working on a DAO might include about 0.5% of the maximum supply of the protocol’s tokens. If the same software engineer works for an equity-based company, she might get a 1% stake in the company.
- Equity is greatly diluted over time, and token ownership is set based on the maximum token supply. Both the company’s equity and the DAO’s token ownership are determined by “stage” (i.e. early = more ownership), but this is particularly noticeable in the “dilution” that is almost non-existent in the DAO. For example, a senior employee of a company in the B/C stage might get 2% of the equity, while the same employee gets 1% of the later DAO’s maximum token supply is almost a fantasy.
- It is worth noting that the dilution data mentioned above only applies to projects with a fixed total amount of tokens. In projects with inflationary characteristics, dilution of token ownership is still possible.
- The survey results show that most of Web3’s equity and token release schedules have the shadow of Web2, that is, a vesting period of up to 4 years and a 1-year cliff are generally set. However, it’s worth noting that the vesting schedule for tokens varies by project, with some projects offering a 2-year vesting period with a 1-year cliff or no cliff at all. Also, in tokens with a 2-year and 4-year vesting period, although the tokens can be used for staking, delegation, voting, etc. on the protocol itself, the vested tokens are sometimes locked for a period of time in the future Inside.
Distributed office becomes the new normal
Most of the companies surveyed consider themselves to be “distributed office entities” and use remote work as the primary operating model for their business. Even U.S.-based companies have more than 33% of their employees from around the world, according to the findings, a model that seems necessary given the pooled “global workforce” of cryptocurrencies. Early-stage companies are more inclined to telecommute, while companies that have raised Series A or B funding may have one or more formal offices.
Founder salaries tend to be consistent, largely determined by company stage
Founder salaries vary widely based on a number of factors, the most significant of which is the stage of the company. For early stage companies, founders tend to pay themselves the minimum wage to maintain a comfortable but basic quality of life. For most early stage founders, the annual salary is between $100,000 and $175,000, with the highest salary being around $130,000-$160,000. This number is higher for U.S. founders and slightly lower for international founders, depending on location and cost of living. Founders of late-stage companies earn higher salaries, around $175,000 to $225,000.
The founders of the company collectively own a large amount of equity, about 80% in the early days of the company, which is diluted to 30-50% in subsequent rounds of financing, depending on the amount and terms of the financing. Independent founders obviously have more equity than teams, where equity is shared by all founders. However, founding teams tend not to hire too many executives to dilute their stakes. DAOs or protocol founders own a smaller percentage of the maximum token supply. According to the survey, the maximum value of token ownership for independent founders is 10%, from an independent founder of an early-stage company. Overall, founders typically own 8-12% of the largest token supply, and independent founders own 2.5-7.5%, with 4-6% being the most concentrated range of ownership distribution.
Non-Founder, Executive Compensation
Non-founder executive compensation in early-stage companies is often at the same level as founders. Salaries usually range from 120,000 to 160,000. For these early-hire non-founder executives, the equity package is much richer, with 1.0-4.0% company ownership depending on role, company, and stage. Engineers and BD/Partner executives tend to be the highest paid roles on these teams.
For late-stage companies, non-founder executive salaries are typically much higher than founder salaries, mostly above $225,000. As with all other roles, the minimum pay for executives in the US is higher – no non-founder executive in the US will ever make less than $100,000. Executive compensation is less dependent on location, especially for CTO or engineering director positions, with international employees being paid almost on par with U.S. employees. The highest paying executive, non-founder positions are CTO (head of engineering) and CRO (head of sales). Many executive sales positions receive substantial performance-based variable compensation. Executives hired by late stage companies typically receive 1.0%-2.0% of the company’s equity, while executives from a DAO or protocol typically receive 0.5%-1.0% of the maximum token supply.
Crypto Engineer Salary
This is one of the most concerning questions in the entire cryptocurrency community. Despite the influx of new engineers learning Solidity, Rust or other languages, there is still a shortage of technical talent in the cryptocurrency space.
The truth is that cryptocurrency engineers have a wider range of salary levels than executives, both from a base salary and from an ownership perspective. Over 55% of all engineering positions (including non-crypto engineers working at cryptocurrency companies) are paid between $100,000 and $170,000. Engineers under $100,000 mostly work in countries where the cost of living is lower.
For “cryptocurrency-limited” jobs such as Solidity, Rust, and blockchain architects, differences in the cost of living in different regions can be ignored. More than 65% of workers are distributed around the world, but their salaries are very impressive. Although the salary of most cryptocurrency engineers is still between 100,000 and 170,000, more than 15% have exceeded the upper limit, and the highest received a basic salary of nearly 300,000 annual salary. At the same time, these engineers may “do side jobs” in DAOs or decentralized networks, so they can also hold 0.1%-0.4% of project tokens.
Compensation for non-executive business operations (marketing, sales/BD, product, operations, etc.)
Compensation for non-executive business operations positions is more dependent on where the employee works than for engineer, founder or executive positions. Those working internationally where the cost of living is lower are often paid significantly less than those working in the US (or UK/Europe).
In this category, the highest paying roles are BD/Partners: $60,000-$120,000 for mid-level and around $150,000 for senior. The salary range for Marketing/Public Relations/Communications is similar: $8-100,000 for mid-level; about $140,000 for senior. Compensation for product and finance people is also in this range, but usually only late stage companies need it. The lower-paying positions are operations, design, human resources and community management, with non-executive salaries typically topping out at $120,000-$130,000.
Data with a small sample size is often presented in the form of a large data set to ensure full anonymity of the data. Hope this information will be helpful to the community.
Framework plans to conduct a new round of surveys in the second half of this year, and will propose a community-focused version after completion, and look for more new inspiration from the data.
Note: This report is for informational purposes only and should never be used as legal, regulatory, tax or financial advice. Opinions herein may change without notice.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/web3-salary-revealed-a-million-yearly-salary-that-is-at-your-fingertips/
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