Dragonfly’s Crypto Compensation Report 2023 Reveals Key Trends in Salaries, Equity and Token Packages in the Crypto Industry.
In a study, Dragonfly released its 2023 Crypto Compensation Report, providing much-needed analysis of compensation trends within the fast-growing cryptocurrency industry. The report, compiled by Zackary Skelly and Chris Ahsing, offers a detailed look at salary structures, equity packages and token compensation across roles and geographies, shedding light on the competitive landscape for both start-ups and established companies.
The analysis, which spans 49 portfolio companies, reveals that US-based crypto firms typically offer higher compensation than their international counterparts – 13% more in salaries and 30% more in stock and token packages. An exception to this trend are product designers at international companies, whose stock and token packages are more aligned with US figures.
Compensation strategies and geographic nuances
In particular, the report shows that most crypto firms do not adjust salaries based on cost of living (COL), instead tying compensation to the value an individual brings to the company. However, for companies adjusting to COL, the preferred methodologies are local market rates and geographic tiers.
When it comes to payment methods, fiat currency remains predominant. However, international companies are increasingly using crypto payments, especially USDC, to streamline international transactions and manage exchange rate fluctuations. This practice is particularly common for contractors and in regions with limited banking infrastructure.
Token Launch Trends and Compensation Dynamics
The survey 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 way. Token compensation is often proportional to equity, suggesting a cautious approach that takes into account market volatility.
The future of crypto compensation
Looking ahead, the report highlights the importance of real-time compensation and hiring demand data to inform future trends. Dragonfly promises to refine and expand its research, aiming to provide more statistically significant data and allow better comparisons with Web2 compensation models.
In conclusion, the 2023 Crypto Compensation Report from Dragonfly offers valuable insight 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 key resource for strategic decision-making in talent acquisition and retention.
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