Original source: Framework Ventures
Original Compilation: Paramount, Foresight News
Framework has always regarded promoting the development of the cryptocurrency industry as the focus of all aspects of business development. In order to achieve this goal, Framework continues to try and provide many meaningful resources for the entire cryptocurrency community. While there has been an influx of talent into Web3 in the last year, the hiring process in this nascent field remains fragmented and opaque, both for companies and potential employees. As such, Framework has compiled a salary guide for the cryptocurrency community based on data taken from its biannual salary survey. The report collects comprehensive salary data for VC-backed startups, so it is of great reference value for those who want to enter the cryptocurrency field.
While founders under The Framework Tent will be able to use their Founder Pass NFTs to obtain more complete data and reports, 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 a job or argue with their boss repeatedly about salary
Student party considering a career in cryptocurrency
Research methods and definitions of several key words
Framework surveyed 18 companies in its portfolio, ranging in size from 2 to 80 employees. As such, these figures represent remuneration for early and mid-stage companies, often backed by venture capital funds.
Although not subdivided into specific fields, most of Framework's investment portfolios are DeFi, infrastructure and Web3 game 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 companies (hereinafter referred to as "responsible companies"), decentralized protocols, and DAOs (hereinafter referred to as "reviewed projects").
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Fiat currencies are still king in the U.S., but stablecoins have gained a lot of influence internationally
More than 80% of the companies are headquartered in the United States. These respondents all use the US dollar as the main payment method. This is usually to ensure that employees can more easily handle salary income and consumption, and to distribute benefits to employees more conveniently. After all, the general situation None of the next benefit providers will support stablecoins. But there are also companies that pay salaries in USDC to labor contracts and even full-time employees.
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The specific mode of equity and token distribution is determined by the stage and entity structure of the company.
Tokens offer holders 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 as well as employees within a network or company. However, the distribution of tokens and equity can vary significantly. While the survey shows that token and equity compensation is highly dependent on the individual company, there are still some valuable insights to be gleaned from it.
The US-based team is unlikely to launch a token, nor does it even plan to do so in the future. Internationally, more than 25% of projects have launched tokens, and most projects are considering launching in the future. Early-stage companies are much less likely to launch tokens.
For decentralized networks or DAOs, token ownership (and equity) is the standard way to incentivize employees.
Comparing companies that offer equity and token ownership, the equity offering ratio is approximately double the token ownership ratio.
For example, a compensation package for an early software engineer working at a DAO might include about 0.5% of the protocol's maximum token supply. If the same software engineer worked for an equity-based company, she might get 1% of the company's equity.
Stake is greatly diluted over time, and token ownership is set based on the maximum token supply. Equity in companies and token ownership in DAOs are both determined by "stage" (ie early = more ownership), but this is particularly noticeable in DAOs where "dilution" is almost non-existent. For example, a senior employee of a company in the B/C stage may receive 2% of the equity, while it is almost impossible for the same employee to receive 1% of the maximum token supply of the DAO in the later stage.
It is worth noting that the dilution data mentioned above only applies to projects with a fixed total amount of tokens. Dilution of token ownership is still possible in projects featuring inflation.
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Distributed office has become the new normal
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Founder compensation tends to be consistent, largely determined by company stage
Founder salaries vary widely based on a number of factors, the most notable of which is the stage of the company. For early-stage companies, founders tend to pay themselves 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 around $130,000-$160,000. This number is higher for U.S.-based founders and slightly lower for international founders, depending on location and cost of living. Founders of later-stage companies earn higher salaries, around $175,000 to $225,000.
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Non-founder, executive compensation
Non-founder executive compensation at 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, ranging from 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.
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Crypto Engineer Salary
This is one of the biggest concerns in the entire cryptocurrency community. Despite the influx of new engineers learning Solidity, Rust, or other languages, there is still a dearth of technical talent in the cryptocurrency space.
The truth is, there is a wider range of compensation levels for cryptocurrency engineers than for executives, both from a base salary and from an ownership perspective. Over 55% of all engineering jobs (including non-cryptocurrency engineers working at cryptocurrency companies) earn $100,000-$170,000. Engineers under $100,000 mostly work in countries with a lower cost of living.
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Compensation for non-executive business operations (Marketing, Sales/BD, Product, Operations, etc.)
Compensation for non-executive business operations roles is more dependent on where employees work than for engineer, founder or executive positions. Those who work internationally in regions with a lower cost of living often earn significantly lower salaries than those working in the US (or UK/Europe).
in conclusion
in conclusion
Data with a small sample size is often presented in the form of a large data set to ensure that the data is fully anonymized. Hope this information helps the community.
Framework plans to conduct a new round of surveys in the second half of this year. After completion, a community-focused version will be proposed, and more new inspirations will be found from the data.
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