Across Protocol's recent temperature check proposal has sparked renewed debate about the viability of token-based governance models, potentially signaling a broader shift in how crypto organizations structure themselves and compensate their teams.
DAOs Question the Token Model
The proposal from Across Protocol marks a significant moment for decentralized autonomous organizations. As more projects evaluate the practical challenges of token-based governance, questions arise about whether traditional equity structures might better serve both companies and their employees.
This development comes as many crypto organizations face mounting pressure to demonstrate sustainable business models and clearer paths to profitability. Token-based compensation, once viewed as a revolutionary alternative to equity, has shown limitations in terms of regulatory clarity, price volatility, and alignment of long-term incentives.
Implications for Compensation and Hiring
The potential shift toward equity structures carries significant implications for blockchain professionals:
- Compensation packages may increasingly resemble traditional tech startup offers, combining salary with equity rather than token allocations
- Regulatory clarity improves for equity-based compensation compared to token grants, particularly in major markets like the United States and Europe
- Career stability considerations change as equity typically comes with vesting schedules and clearer valuation metrics
- Tax treatment becomes more predictable under established equity frameworks versus uncertain token taxation
For hiring teams, this transition requires adapting recruitment strategies and compensation benchmarking. Web3 companies may find themselves competing more directly with traditional tech firms for talent, using similar compensation structures.
What This Means for Web3 Professionals
Professionals in the blockchain space should monitor how their current or prospective employers approach this question. Organizations maintaining pure DAO structures may face different talent acquisition challenges than those adopting hybrid or equity-based models.
The discussion reflects broader maturation in the crypto industry. While tokens remain valuable for certain use cases like protocol governance and network incentives, equity may prove more practical for compensating full-time contributors and aligning long-term organizational goals.
This evolution doesn't necessarily diminish opportunities in web3—rather, it suggests the sector continues adapting its operational models while maintaining its technological innovation. Professionals should evaluate opportunities based on sustainable business models, clear governance structures, and compensation packages that balance innovation with practical career considerations.
