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There’s a silent threat lurking beneath the surface—a developer shortage. While the crypto world thrives with a vibrant community of traders and enthusiasts, the developers who build the onchain products that drive long-term value are rare. Without a robust developer base, crypto’s potential to achieve mass adoption is significantly reduced.
Most people aren’t interested in trading or hyper-financial products—they want solutions that make their lives easier, more efficient, and more secure. We need builders who can create sustainable, long-term-focused products that go beyond short-term hype and speculation to achieve this. For crypto to reach mainstream adoption, blockchain technology must disrupt industries beyond just finance.
Here’s a brutal truth: crypto has roughly 1,000 times fewer developers than traditional tech. As of 2024, Electric Capital’s Developer Report indicates 26,037 monthly active web3 developers globally. In contrast, estimates from Evans Data Corporation and International Data Corporation suggest there are around 27 million developers worldwide, with GitHub reporting approximately 100 million active developers. This stark disparity highlights a significant problem: the crypto space lacks the developers needed to build the wide range of applications required for mainstream adoption.
Consider the example of Base, a project that has prioritized creating a developer-friendly environment. By providing a comprehensive suite of tools, documentation, and resources, Base simplifies the process of building onchain. This approach has attracted numerous developers, both experienced and junior, who are already working on a wide range of decentralized applications and tools. Base’s success demonstrates the powerful impact a vibrant developer ecosystem can have on crypto’s growth and adoption 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 the real pain
The shortage of web3 developers stems from several challenges. One major issue is the “cold start problem” in crypto. It would be easier to onboard new developers if they were already onchain users. However, to onboard them as users, we need a broader range of apps beyond just financial use cases, and creating these apps requires more developers.
Another challenge is the perception of risk associated with becoming an onchain developer. Crypto is still viewed by many as a shady, unregulated area linked to scams and market volatility. Additionally, the lack of job security and clear career paths makes it a less appealing option compared to more stable, established fields. Consequently, the crypto industry tends to attract younger developers who have less to lose, while experienced professionals remain cautious about the potential risks.
In my personal opinion, building onchain is far more fun than building online, but this isn’t always apparent to developers from the outside. To them, crypto can seem dominated by financial products, shady projects, and complex technology, leaving little room for meaningful and impactful work.
So the question arises: How can we make building in crypto more attractive?
To address this developer shortage, 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 group of existing crypto developers instead of working together to bring more builders onchain. Hackathons, while exciting and full of potential, are typically one-off events that don’t provide the long-term support developers need to sustain their projects. Grants are often too bureaucratic and centralized, with lengthy application processes and strict requirements that can be discouraging for new builders.
Universal builder income is a new way
What if we could offer developers a more consistent and reliable way to make ends meet? This is where universal builder income comes in. UBI, an idea pioneered by Base and coined by Jesse Pollak, represents a novel approach to distributing financial incentives to builders more efficiently. By “builder,” I’m referring to all people directly involved in shipping software, not exclusively developers.
Think of UBI as a regular paycheck for new onchain builders—one that doesn’t require an application process but instead rewards actual contributions and verified reputations. We’re already seeing the early stages of UBI in action. For example, Drips Network—a decentralized toolkit aimed at funding essential software dependencies—is exploring how to distribute financial incentives more effectively and at scale.
For crypto to succeed, we need more builders. UBI offers a way to attract more builders onchain by acknowledging and supporting those who are committed to shipping great software. By providing a safety net, UBI empowers 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 builders, we can reduce the reliance on centralized entities and foster a more equitable distribution of rewards. Eliminating intermediaries ensures that value flows directly to the edges of the network, prioritizing new over established builders.
Critics might question, “Who funds this?” However, we’re already investing substantial resources to attract developers, much of which is wasted on inefficient corporate strategies like employer branding or arbitrary sponsorships and events. By contrast, imagine a future where a portion of profits or ecosystem transaction fees automatically supports a UBI pool, rewarding those who are 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 financial incentives directly to individuals rather than startups, UBI fosters a more inclusive and experimental environment, unlocking a new wave of creativity and innovation. This approach can bring a variety of global perspectives, leading to more diverse solutions and driving crypto adoption in novel ways. Talent is everywhere, so the next big breakthrough could come from anyone, anywhere.
Anu Atluru talks about “The Rise of the Software Creator,” and it paints a beautiful picture: a future where anyone can be a builder. With AI making shipping software easier, we’ll see a wave of “low-code builders that specialize in concept, creativity, and distribution more than in technical prowess.” UBI fuels this movement by giving these software creators the freedom to experiment and chase their ideas. With more builders empowered, we can expect an explosion of apps that go beyond tooling—they become art, games, and experiences that enrich our lives.
It’s action time for crypto leaders
UBI is a transformative concept with various potential implementations. It represents a value system and worldview, offering a general direction rather than an exact recipe.
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 realizing universal builder income.
The crypto industry stands at a crossroads. We can either maintain the status quo or innovate to create a more resilient and inclusive ecosystem. By supporting builders through initiatives like UBI, we can ensure that the next generation of software creators has the tools and resources they need to succeed. The road to mass adoption doesn’t lie with traders but with the builders who will develop the applications and services that integrate crypto into the daily lives of billions.
