Developer shortage in the crypto space is where the real problem lies

Disclosure: The views and opinions expressed herein are solely those of the author and do not represent the editorial views and opinions of crypto.news.

There’s a silent threat lurking beneath the surface: developer scarcity. While the crypto world thrives on a vibrant community of traders and enthusiasts, developers who build on-chain products that deliver long-term value are rare. Without a strong developer base, crypto’s potential to reach mass adoption is significantly diminished.

Most people aren’t interested in commerce or hyper-financial products; they want solutions that make their lives easier, more efficient, and more secure. To achieve this, we need builders who can create sustainable, long-term focused products that transcend short-term hype and speculation. For crypto to reach mainstream adoption, blockchain technology needs to disrupt industries beyond finance.

Here’s a harsh reality: crypto has about 1,000 times fewer developers than traditional technology. Electric Capital’s Developer Report shows that there will be 26,037 monthly active web3 developers globally as of 2024. In comparison, estimates from Evans Data Corporation and International Data Corporation suggest there are about 27 million developers worldwide, and GitHub reports about 100 million active developers. This striking disparity highlights a major problem: the crypto space lacks the developers needed to build the broad range of applications needed for mainstream adoption.

Take Base, a project that prioritizes creating a developer-friendly environment. By providing a comprehensive suite of tools, documentation, and resources, Base simplifies the on-chain build process. This approach has attracted a large number of developers, both experienced and junior, who are already working on a wide variety of decentralized applications and tools. Base’s success shows how a vibrant developer ecosystem can have a powerful impact on the growth and adoption of crypto with a more mainstream audience. When developers are empowered with the right tools and incentives, they can create applications that will bring millions of users into the crypto ecosystem.

Developer shortage is a real pain

The scarcity of Web3 developers stems from several challenges. One of the biggest problems in crypto is the “cold start problem.” It would be easier to recruit new developers if they were already on-chain users. However, to recruit them as users, we need a broader range of applications beyond just financial use cases, and building those applications requires more developers.

Another challenge is the perceived risk associated with being an on-chain developer. Crypto is still viewed by many as a murky, unregulated space that is associated with scams and market volatility. Additionally, the lack of job security and clear career paths makes it a less attractive option compared to more stable, established fields. As a result, the crypto industry tends to attract younger developers who have less to lose, while seasoned professionals remain cautious about potential risks.

In my personal opinion, building on-chain is much more fun than building online, but this is not always obvious to developers from the outside. To them, crypto financial products can seem dominated by shady projects and complex technology, leaving little room for meaningful and impactful work.

So the question arises: How can we make building with cryptocurrency more attractive?

To fill this developer gap, the industry has leaned heavily on grants and hackathons. While these are valuable tools, they often result in crypto companies competing for the same limited number of existing crypto developers rather than working together to bring more developers onto the chain. Hackathons, while exciting and full of potential, are often one-time events that do not provide the long-term support developers need to sustain their projects. Grants are often very bureaucratic and centralized, with lengthy application processes and strict requirements that can be deterrents to new developers.

Universal builder income is a new way

What if we could give developers a more consistent and reliable way to make a living? That’s where universal builder income comes in. UBI, an idea pioneered by Base and originated by Jesse Pollak, represents a new approach to more efficiently distributing financial incentives to builders. By “builder,” I mean not just developers but all people directly involved in distributing software.

Think of UBI as a regular paycheck for new onchain creators, one that doesn’t require an application process but instead rewards real contributions and verified reputation. We’re already seeing early stages of UBI in action. For example, Drips Network, a decentralized toolkit aimed at financing core software dependencies, is exploring how to distribute financial incentives more effectively and scalably.

For crypto to succeed, we need more developers. UBI provides a way to attract more developers on-chain by acknowledging and supporting those who are dedicated to delivering great software. UBI provides a safety net, allowing developers to focus on creating innovative solutions rather than worrying about their next paycheck. Additionally, UBI can further decentralize the crypto ecosystem. By distributing financial incentives directly to individual developers, we can reduce reliance on centralized entities and ensure rewards are distributed more fairly. Removing middlemen allows value to flow directly to the edges of the network, prioritizing new developers over established ones.

Critics may ask, “Who is funding this?” But we already invest significant resources into attracting developers, and much of it is spent on inefficient corporate strategies like employer branding or discretionary sponsorships and events. In contrast, imagine a future where a portion of profits or ecosystem transaction fees automatically supports a UBI pool, rewarding those actively building the future of crypto.

UBI isn’t just about efficiency; it also has the potential to attract a more diverse group of developers, including those from underrepresented backgrounds. By providing direct financial incentives to individuals rather than startups, UBI creates a more inclusive and experimental environment, unlocking a new wave of creativity and innovation. This approach can offer a variety of global perspectives, lead to more diverse solutions, and drive crypto adoption in new ways. Talent is everywhere, so the next big thing can come from anyone, anywhere.

Anu Atluru talks about the “Rise of the Software Creator” and paints a beautiful picture: a future where anyone can be a developer. As AI makes it easier to ship software, we will see a wave of “low-code developers who specialize in concept, creativity, and delivery rather than technical skill.” UBI feeds into this movement by giving these software creators the freedom to experiment and pursue their ideas. As more developers become empowered, we can expect an explosion of applications that go beyond tools; they become art, games, and experiences that enrich our lives.

Time for crypto leaders to take action

UBI is a transformative concept with a variety of potential applications. It represents a value system and worldview that offers a general direction rather than a precise prescription.

To the crypto leaders reading this: It’s time to start your own UBI experiments. Explore different funding models, evaluate their effectiveness, and share your insights with the community. The more we experiment, the closer we get to achieving universal builder income.

The crypto industry is at a crossroads. We can either maintain the status quo or innovate to create a more resilient and inclusive ecosystem. By supporting developers through initiatives like UBI, we can ensure that the next generation of software creators have the tools and resources they need to succeed. The path to mass adoption lies not with merchants, but with developers who will build the applications and services that will integrate crypto into the daily lives of billions.

Filipe Macedo

Filipe Macedo is the co-founder and chief product officer of Talent Protocol, combining his expertise as a computer engineer with that of a creative marketer. In 2021, he co-founded Talent Protocol with Pedro Oliveira, with the mission of increasing the visibility of technical talent in emerging markets. Before founding Talent Protocol and fully immersing himself in web3, he spent over a decade at a leading creative agency. He specialized in creating digital-first brands for tech startups and global businesses, including Nike, L’Oréal, and ActivoBank (recognized as Europe’s Best Bank for Social Media in 2012). Filipe is a sought-after keynote speaker at conferences and has shared his insights as a guest lecturer at Imperial College Business School in London, UK, and Berghs School of Communication in Stockholm, Sweden.