The crypto dream was predicated on the hope of a financial revolution, a new leveling of the playing field. Decentralization was the mantra, equity the guiding principle. At some point down the trail suits got involved, and they’ve been robbing artists of their piece of the pie ever since. What was supposed to be a digital revolution is now starting to feel a lot more like a classic, corrupt, inside-the-beltway, rigged game.
The numbers don't lie: Bitcoin mining executives are raking in obscene amounts of cash, far outpacing their counterparts in tech and energy. We’re talking about salaries and bonuses almost doubling, equity awards that would make a Wall Street titan turn white. This isn't innovation; it's insulting!
Shareholders are waking up, finally. After these outrageous pay packages, approval rates are nearing a free-fall. "Waking up" isn't enough. We need action. If we want to reclaim the spirit of crypto, we need to start holding these executives accountable.
Cap the Greed Now!
So, it’s high time to make the leap between Marie Antoinette and Bitcoin mining. Let them eat cake, she famously (and hopefully apocryphally) replied, totally disconnected from the struggles of her subjects. Are these mining executives any different? They’re chomping down on equity, cashing in on this bounty. In the meantime, the miners— the true backbone of the Bitcoin network— are left feasting on scraps.
As VanEck reports, that means that Riot Platforms CEO Fred Thiel left the company this year with a jaw-dropping $79.3 million equity award in 2024. Let that sink in. $79.3 million! That’s more than enough to pay for a decade of community projects, pay for artists to create inspirational work, or, you know, actually improve the Bitcoin network. Instead, it serves the interests of only one guy’s wallet.
This is more than bad optics – it’s bad business. When executive compensation is this disconnected from pay-for-performance, it engenders a culture of entitlement and fosters resentment. It's a recipe for disaster.
Demand Radical Transparency!
Think of Wall Street in 2008. Opaque financial instruments, naked greed, and a total absence of accountability resulted in a global economic crash. Are we making the same mistake now with Bitcoin mining? This year, 79% of compensation was tied to equity. By 2024, that number leaps to 89%, compelling executives to prioritize increasing stock prices over the interests of the company’s long-term viability and network durability. This significantly dilutes shareholder value and develops a perverse incentive to prioritize short-term gains over long-term sustainable growth.
Sunlight. We need radical transparency in executive compensation. Mining companies should have to disclose in detail how they calculate executive compensation. Further, they will need to detail how this compensation is tied to their key performance indicators. These annual, non-binding, “say-on-pay” votes are a step in the right direction, but only a start. We need independent audits and shareholder oversight. We’ve got to bring some sunlight into this financial black box and root out the corruption hiding inside.
Tie Pay to Real Performance!
Remember Enron? Enron has become the poster child for corporate malfeasance. Yet even as the company collapsed under its own fraud, it continued to shower its top executives with lucrative bonuses and stock options. The lesson? Incentives matter.
We can and must do better by linking executive pay to actual, demonstrable performance. Not only stock price, but metrics that indicate the development state and future of the Bitcoin network. VanEck proposes linking bonuses to CPCmined and implementing capital efficiency metrics. This is a much-needed step in the right direction, but we can and should do more.
Executive pay must match the values of the Bitcoin community – decentralization, sustainability and fairness.
- Network Hashrate Contribution: Reward executives for increasing the company's contribution to the overall Bitcoin network hashrate.
- Energy Efficiency: Tie bonuses to reductions in energy consumption per Bitcoin mined.
- Community Engagement: Reward executives for fostering a positive and engaged community around their mining operation.
| Metric | Why It Matters |
|---|---|
| Cost per Coin Mined | Efficiency and profitability |
| Energy Consumption | Sustainability and environmental impact |
| Hashrate Contribution | Security and decentralization of the Bitcoin network |
| Community Engagement Score | Brand reputation and long-term sustainability |
It's time for a crypto populist uprising. It's time to demand accountability. Let’s restore that dream of a financial system that serves the 99 percent, not just one percent of the profits. The tragedy of this excessive pay is real—but here’s how we can remedy that. This is how we take back control. This is how we save Bitcoin.
It's time for a crypto populist uprising. It's time to demand accountability. It's time to reclaim the dream of a financial system that serves the many, not just the few. The excessive pay is a tragedy, but this is how we can fix it. This is how we take back control. This is how we save Bitcoin.
Nguyen Thi Hanh
Cryptocurrency Writer
Nguyen Thi Hanh channels progressive, pragmatic views into high-energy, approachable crypto journalism, delivering confident, animated articles with regional and global relevance. Her optimistic, party-going spirit helps translate complex blockchain ideas into viral, visually engaging stories. Outside of writing, she enjoys urban food adventures and organizing community hackathons.
