ConsenSys cuts headcount by 11% as chief economist reveals adoption formula

ConsenSys, the parent company behind MetaMask, is laying off 11 percent of its workforce, with CEO Joseph Lubin blaming “market uncertainty” for the recent crash.

In a Jan. 18 blog post by ConsenSys CEO Joseph Lubin, the blockchain firm’s CEO said that “misbehaving” centralized finance (CeFi) actors have “had a massive impact on our ecosystem through which we All will need to work.”

Lubin said the decision will affect 96 employees and is part of plans to focus resources on its core business.

Speaking to Cointelegraph a few days before the holidays were officially announced – although they had already been widely reported – Lex Sokolin, Chief Cryptoeconomics Officer at ConsenSys, said that the industry is still growing globally. Far from being adopted at scale.

“We’re still in a place where this is an emerging technology. It’s not completely well understood by the public at large,” he said.

According to Consensys, during the last bull run, more than 30 million users per month were using MetaMask to trade DeFi protocols, mints and NFTs, and participate in DAOs. While promising, this is a drop in the ocean globally.

“MetaMask has 30 million monthly users and Web3, maybe 500 million addresses,” Sokolin said. “But it’s not five billion people.”

Asked when crypto will see mainstream adoption, Sokolin said it’s all about having enough compelling use cases for crypto, as well as a thriving ecosystem to support it.

Lex Sokolin, Chief Crypto Economist, ConsenSys Source:

They also rejected the idea that it would result in a better user experience and clearer regulations.

“They’re not the things people say they are. [such as] ‘When will UI improve’, or ‘When will regulation improve it.’ These are important, but […] They are not catalysts,” Sokolin added:

“The catalyst for things is, one: Will there be enough things to buy on Web3 that I want to own?”

“If I live in Web3 and my avatar and my social media and my data and my status as a person, dignity, community. […] I am attached to owning digital objects. […] You’ll inevitably get to a point where everyone wants to do business in Web3.”

“So for me, economic adoption is the most important thing. Because that will pull the rest of it into the ecosystem.

Related: Crypto Adoption in 2022: What Events Drive the Industry?

In his latest post, Lubin said the company will continue to focus on growing its workforce and focusing its business on core value drivers, including end-user custody solution Metamask, developer platform Infora, and “new offerings.” which promotes Web3 commerce and decentralized autonomous organization. (DAO) communities.