Stocks are favored over tokens among new hires, according to a new study from Variant and Union Square Ventures that shows a significant shift in employee compensation preferences in the crypto industry.

This survey, aimed at understanding emerging trends in 2023, involved evaluating businesses in the investment portfolios of two crypto companies.

Data from interviews with 32 Web3 startup employees reveal a significant departure from the past practice of compensating employees with stock rather than tokens.

Historically, Web3 firms have offered token-based compensation since 2013, and stock compensation was not available before 2018.

Less than 40% of employees surveyed over the years have received stock, while about 50% have been compensated with tokens.

But 2023 is a major turning point where new hires are three times more likely to receive shares rather than tokens.

While it is too early to call this shift a trend, the data strongly suggests that startups are exploring alternative incentive mechanisms that are less reliant on tokens than in previous crypto market cycles.

This development highlights the dynamic nature of the crypto industry, which is constantly adapting and maturing.