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I can answer that from personal experience: Because it's what's offered and is a good deal. I'm about to start a long-term role where non-cash crypto-tokens a
by jlokier 6y ago
I can answer that from personal experience:
Because it's what's offered and is a good deal.
I'm about to start a long-term role where non-cash crypto-tokens are part of the compensation.
I'm not a "true believer" at all. I don't have any crypto at the moment, don't have a wallet yet, and to be honest it's just going to complicate my company accounts and taxation. I do know the field, and I'm sufficiently skeptical to remain not a true believer :-)
Good old fiat would certainly be more convenient, and I could invest that in crypto in my own time and on my own terms if I wanted to do that.
So why accept?
Because I like the company (a lot so far) and the people, the company seems refreshing and well-architected, I'm looking forward to working with the people there, they are working on interesting and worthwhile problems. I anticipate I'm going to learn a lot working there, not only technical, but about real world non-technical social issues I'm not that familiar with at the moment.
And the pay is good, or at least good enough. (I know I can get more by chasing consultancy contracts, but I'm taking a break from that to go all-in on a single company's product development).
Generally the same sorts of reasons for choosing any job.
Despite not being a "true believer" in cryptocurrency, I think I bring a grounded and mature view of the more general (non-currency) crypto ecosystem the company is working with, which will hopefully mean I contribute in a grounded and mature way to the company conversations, and in a better product for real world applications in the long run.
The fact some of the pay is in crypto-tokens is understandable given the company's mission as well as its source of funding, and I'm not unhappy with that. But I wouldn't choose it to be honest if it were a genuinely neutral option on the table. But in exactly the same way, I wouldn't choose RSUs or stock options with another company if equivalent (fiat) cash were available instead. In many ways liquid crypto-tokens are much better than stock options!
As a result, back to the point about corporate scrip. I think we are seeing a rise in scrip-like tokens, but, the GP is right, liquidity changes things. It gives back much of the autonomy that traditional scrip takes away. I know I can, in principle, trade the scrip for cash at any time.
The volatility is not great. The uncertainty around long term value of that portion of income is not great (although I do get to choose the proportion over a substantial range, and change it when I want).
But I've often been paid in international currencies too, and similar issues apply to that. There's some price volatility, it's worth keeping a balance in each currency for expenses in those currencies, and the company accounting and taxation for a small company paid a range of international currencies whose value fluctuates is also annoying.
So being paid in crypto-tokens, a kind of liquid corporate scrip, is not especially more bothersome than being paid in a range of international currencies. It's mostly just different practicalities.
- vmception 6y agoI had one company a few years ago that tried to process payroll with crypto tokens. Its too complicated for employee relationships in the US. We ended up doing a fixed preallocated vesting amount, similar to RSUs. We had a payroll company specifically for tax compliance and automation but any token payment to employees required us to do it ourselves. So vesting just reduced the number of times we needed to do it. But contractors are much simpler.