The cryptocurrency industry faces a silent but serious challenge: a need for more developers. While crypto boasts a vibrant community of traders and enthusiasts, it lacks the builders needed to create sustainable on-chain products that can drive long-term value. Without a robust developer base, the industry’s potential for mass adoption is at risk.
Most people aren’t interested in trading or complex financial products; they seek solutions that make their lives easier, more efficient, and secure. To achieve mainstream adoption, blockchain technology must extend beyond finance and disrupt various industries.
The Developer Deficit in Crypto
Crypto has approximately 1,000 times fewer developers than traditional tech sectors. In 2024, Electric Capital’s Developer Report counted only 26,037 monthly active Web3 developers, compared to around 27 million traditional developers globally. This disparity highlights a major problem: the crypto space lacks the manpower needed to build the wide array of applications necessary for mainstream adoption.
Some projects, like Base, have worked to attract developers by creating a user-friendly environment with tools, documentation, and resources. Base has demonstrated that a vibrant developer ecosystem is essential for crypto’s growth and mainstream appeal.
The Root Causes of the Developer Shortage
Several factors contribute to this shortage. First, crypto faces a “cold start problem,” where the limited number of developers onchain hinders the creation of new apps, which are essential to attract more users. Secondly, crypto’s perception as a volatile and risky space, associated with scams and market instability, deters experienced professionals. As a result, the industry primarily attracts younger developers with less to lose.
The Limitations of Current Solutions
Efforts to attract developers, such as grants and hackathons, often need to be revised. These approaches tend to focus on competing for the same small pool of existing crypto developers rather than expanding the community. Grants can be bureaucratic, while hackathons are one-off events that don’t provide sustained support for projects.
Enter Universal Builder Income (UBI)
To address this issue, the concept of Universal Builder Income (UBI) has emerged. UBI, coined by Jesse Pollak and supported by projects like Base, offers developers a steady source of income without lengthy applications. It rewards builders based on contributions and reputation, allowing them to focus on creating rather than securing funding.
A Path to Decentralization and Innovation
UBI not only provides financial security but also supports decentralization by directing funds to individuals rather than centralized entities. This fosters a more inclusive environment, attracting diverse developers from around the world, potentially leading to innovative solutions that drive crypto adoption in new ways.
By investing in builders through UBI, the crypto industry can unlock a wave of creativity, empowering low-code and concept-driven developers to experiment and create impactful applications. This could lead to the development of apps that go beyond finance—art, games, and experiences that enrich daily life.
Time for Action
Crypto leaders must start experimenting with UBI, exploring various funding models and sharing their findings with the community. By supporting builders, the industry can foster a resilient, inclusive ecosystem that paves the way for mainstream adoption. The future of crypto doesn’t rest with traders but with the builders who will develop the tools and services that integrate blockchain into the daily lives of billions.
