Contracting in Crypto
The global trend towards daily transactions in digital currency continues to accelerate. Starbucks started accepting payments in Bitcoin starting in 2019 and Paypal transitioned their platform to allow for buying, holding and selling crypto in 2021. Early employees at Coinbase who were getting paid in Bitcoin when it was at a low of $91 in 2013 have seen the value of their tokens exponentially increase to $27,878 in May 2023. Those who got in the market in the early days of crypto have experienced unprecedented returns, but it’s not too late to get a foot in the door.
More Options for Paying Your Contractors
For many up-and-coming Web3-native businesses, the future of compensation is in project-specific tokens. For other companies that straddle the Web3/Web2 line, the option to issue payment in a variety of currencies is integral. Whether your project has its treasury in fiat currency, stable coins, or DAO tokens, Rise allows you to pay your contractor in the compensation of your choosing. Once received, the contractor can then decide to keep the given currency or exchange it for a different one offered on the Rise platform. For DAOs that want to pay contributors in their token, Rise functions as a streamlined payroll system with guaranteed compliance. Both DAOs and businesses that opt to pay freelancers in their specific token allow for contractors to not only invest their time into a project but their money as well. This creates a balanced ecosystem between employers and freelance employees. If deciding to earn in a project-specific token, contractors have a level of drive and agency in the project’s success that can serve a similar function to receiving equity in a company.
For Freelancers, Tokens are the New Equity
Everyone knows the real value of getting in early at a growing company. Although salary and title are important, the real advantage lies in the equity and the promise of what going public could bring. When Coinbase went public on April 14th of 2021 it was valued at $86 billion with shares trading at a high of $429. For those equity-holding early employees, this date marked a life-changing moment. But what if you are not a first hire at a company or even a full-time employee? What if you are a member of the ever-growing freelance economy? Flexible hours and the freedom to choose interesting projects are what entice many people into breaking out of the traditional job market. The downside of this increased freedom, up until recently, has meant sacrificing the wealth-potential that comes with equity. This all changes, however, as the playing field is leveled by the option for freelancers to receive payment in tokens.
Why Opt to Receive Payments in Crypto
Seeing Bitcoin’s unprecedented leap in value from 2013-present should be enough to convince you of the potential reward of investing in crypto. While it is not guaranteed that such an extreme level of growth will be seen again, even within smaller projects there is the promise of significant financial gains. Solana, for example, a newer token that began selling at $0.67/SOL in 2020, rose to a soaring price of $258.93 in November of 2021. Had you opted to receive freelance payments in SOL rather than USD, in a year your tokens would have increased in value by 37,800%. Not bad for a freelancer with no equity.
Investing Together
When all contributors to a project are equally invested there is an elevated drive for success. The forward-facing payroll model that Rise has developed generates confidence on the side of the employer and the freelancer. The option for ownership in a project through investment in its token engenders deeper meaning in one's work. For a business, this level of commitment by its contractors ensures a solid foundation for growth. With respect to companies that want to pay their freelancers in fiat currency, on Rise they can still hire top talent without the legwork of jumping between USD and crypto. To learn more about how these innovative systems could work for your business, book a demo today.