As a long-time observer of the tech industry and its evolution, I find the concept of Universal Basic Income (UBI) for builders particularly intriguing. Filipe Macedo, with his rich background in both engineering and marketing, is uniquely positioned to understand the potential impact of UBI on the crypto world.
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.
As an analyst, I firmly believe that the majority of individuals are not enthralled by trading or complex financial products. Instead, they yearn for solutions that streamline their lives, enhance efficiency, and bolster security. Thus, it’s crucial that we foster builders who can craft durable, long-term-oriented products, transcending temporary hype and speculation to meet this demand. For cryptocurrency to become mainstream, blockchain technology must bring about transformative change in industries beyond just finance.
A striking observation: The field of cryptocurrency currently boasts only about 1% of the number of developers found in traditional technology. According to Electric Capital’s Developer Report from 2024, there are around 26,037 active web3 developers worldwide. Meanwhile, it is estimated that there are roughly 27 million developers at large across the globe, with GitHub reporting a whopping 100 million active developers. This vast difference underscores a major issue: the crypto world faces a severe shortage of developers needed to construct the diverse array of applications necessary for widespread acceptance in mainstream markets.
As a researcher studying the impact of developer-focused projects, let me share insights about Base – a project committed to fostering a developer-friendly atmosphere. By offering an extensive collection of tools, guides, and resources, Base streamlines the process of developing onchain solutions. This focus has drawn in developers of all skill levels, from seasoned professionals to newcomers, who are actively contributing to a diverse array of decentralized applications and tools.
Developer shortage is the real pain
The scarcity of web3 developers is due to various hurdles, one significant one being the “cold start problem” in cryptocurrency. It’s simpler to bring on new developers if they are already active on the blockchain. Yet, for them to become users, we need a wider variety of applications that go beyond just financial purposes. Developing these diverse apps necessitates more developers.
One issue that arises in the realm of onchain development is the perceived risk due to crypto being viewed as an unregulated, suspicious sector connected to scams and market fluctuations. Moreover, the absence of job stability and defined career paths makes it less attractive compared to traditional, secure industries. This often leads the crypto industry to attract inexperienced developers who are willing to take risks, while seasoned professionals prefer to tread cautiously due to potential hazards.
From a personal perspective, I find creating on-chain solutions much more engaging compared to traditional online development. However, this might not be immediately clear to external developers due to the perception that the crypto world is primarily focused on financial products, questionable projects, and intricate technology, which can limit the visibility of meaningful and impactful work opportunities.
So the question arises: How can we make building in crypto more attractive?
To combat the developer scarcity, industries have relied heavily on scholarships and coding competitions. Although these resources are beneficial, they frequently lead crypto companies to compete over the same confined pool of existing crypto developers rather than collaborating to attract more developers to the blockchain. Hackathons may be thrilling and brimming with possibilities, but they usually lack ongoing assistance that developers require to maintain their projects. Grants often come with excessive red tape and centralization, featuring lengthy application procedures and stringent guidelines that can deter novice builders.
Universal builder income is a new way
Could we propose a steadier and trustworthy method for developers to sustain their livelihood? That’s where universal builder income steps in. Universal Basic Income (UBI), an innovative concept first proposed by Base and named by Jesse Pollak, presents a unique solution to financially reward those actively involved in software delivery more effectively. When I say “builders,” I’m referring to everyone who contributes directly to the development and deployment of software, not just developers.
Consider Universal Basic Income (UBI) as a consistent salary for developers working on blockchain projects, without the need for a formal application process. Instead, it rewards genuine contributions and recognized reputations. The concept of UBI is already emerging in practice. For instance, Drips Network – a decentralized toolkit designed to finance essential software needs – is investigating methods to distribute financial incentives more efficiently and on a larger 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.
“People might ask, ‘Who’s providing the funds for this?’ However, we’re actually pouring significant resources into luring developers, with much of that investment often going towards ineffective corporate practices such as employer branding or unnecessary sponsorships and events. Instead, consider a future scenario where a share of profits or transaction fees within the ecosystem is automatically channeled towards a Universal Basic Income (UBI) pool, thereby rewarding those who are instrumental in shaping the future of cryptocurrency.
Universal Basic Income (UBI) isn’t only about efficiency; it also holds the possibility of drawing in a broader range of developers, including those from underprivileged groups. By offering financial rewards directly to individuals instead of startups, UBI creates a more welcoming and experimental space, encouraging a surge of creativity and innovation. This strategy could foster a multitude of global viewpoints, resulting in diverse problem-solving approaches and promoting the widespread adoption of cryptocurrencies in innovative ways. Since talent is ubiquitous, the next groundbreaking discovery might come from any individual, anywhere.
Anu Atluru discusses “The Emergence of the Software Innovator,” painting a captivating vision: a future where anyone can construct. As AI simplifies the process of delivering software, we’ll witness a surge of “low-code creators focusing on imagination, originality, and dissemination rather than technical skills.” Universal Basic Income fosters this trend by enabling these software developers to explore and pursue their ideas freely. With an increasing number of creators empowered, we can anticipate a burst of applications that transcend utility—they evolve into art, games, and encounters that enhance our lives.
It’s action time for crypto leaders
Universal Basic Income (UBI) is a groundbreaking idea that can be implemented in multiple ways. It embodies a set of values and perspectives, providing more of a guiding principle than a specific blueprint.
Dear pioneers of cryptocurrency: Now is the moment to embark on your own Universal Basic Income (UBI) trials. Investigate diverse financing strategies, assess their impact, and disseminate your findings among our community. By continuously testing and refining, we move one step closer to actualizing universal income for builders.
At a crucial juncture, the world of cryptocurrency finds itself at a fork in the path. One choice is to carry on as is, while the other offers an opportunity to revolutionize and fashion a stronger, more welcoming environment. By backing innovators through programs such as Universal Basic Income (UBI), we can equip the future architects of software with the necessary tools and assets for their journey towards success. The pathway to widespread acceptance doesn’t rest in the hands of traders but lies with the creators who will construct the applications and solutions that seamlessly blend crypto into the routines of countless individuals worldwide.
Filipe Macedo serves as the co-founder and chief product officer for Talent Protocol, where he combines his technical engineering skills with his marketing creativity. He established Talent Protocol in 2021 together with Pedro Oliveira, motivated by a desire to boost visibility for technical talent in developing regions. Before dedicating himself entirely to web3 with Talent Protocol, he spent more than a decade at a top-tier creative agency. There, he focused on creating digital-first brands for tech startups and multinational corporations like Nike, L’Oréal, and ActivoBank (awarded Europe‘s Best Bank in Social Media in 2012). Filipe is frequently invited to speak at conferences, and he has also provided his expertise as a guest lecturer at the Imperial College Business School in London, UK, and Berghs School of Communication in Stockholm, Sweden.
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2024-09-15 14:08