Dragonfly’s 2023 Crypto Compensation Report Unveils Key Trends in Salary, Equity, and Token Packages
In a survey, Dragonfly has released its 2023 Crypto Compensation Report, providing a much-needed analysis of compensation trends within the rapidly evolving cryptocurrency industry. The report, authored by Zackary Skelly and Chris Ahsing, offers a detailed examination of salary structures, equity packages, and token compensation across various roles and geographies, shedding light on the competitive landscape for startups and established companies alike.
Compensation Strategies and Geographic Nuances
The analysis, which covers 49 portfolio companies, reveals that US-based crypto firms generally offer higher compensation than their international counterparts—13% more in salaries and 30% more in equity and token packages. An exception to this trend is Product Designers at international companies, whose equity and token packages are more aligned with US-based figures.
Notably, the report indicates that most crypto firms do not adjust salaries based on the cost of living (COL), instead tying compensation to the value an individual brings to the company. However, for the companies that do adjust for COL, the preferred methodologies are local market rates and geographical tiered frameworks.
As for payment methods, fiat currency remains predominant. However, international companies are increasingly leveraging crypto payments, particularly USDC, to streamline international transactions and navigate exchange rate fluctuations. This practice is particularly common for contractors and in regions with limited banking infrastructure.
Token Launch Trends and Compensation Dynamics
The study also highlights that a significant majority of companies are considering or have already integrated tokens into their operations, with infrastructure and gaming companies leading the charge. Token compensation is often proportional to equity, suggesting a cautious approach that takes into account market volatility.
Future of Crypto Compensation
Looking ahead, the report underscores the importance of real-time compensation and hiring demand data to inform future trends. Dragonfly pledges to refine and expand their research, aiming to provide more statistically significant data and enable better comparisons with Web2 compensation models.
In conclusion, the 2023 Crypto Compensation Report from Dragonfly offers valuable insights into the compensation trends shaping the crypto industry. As companies navigate the complexities of a global workforce and the unique aspects of crypto-based compensation, this analysis serves as a crucial resource for strategic decision-making in talent acquisition and retention.
