Multicoin Capital's Shayon Sengupta predicts decentralized labor markets will transform crypto, enabling users to earn tokens through tasks.
According to Shayon Sengupta, an investment partner at Multicoin Capital, the future of cryptocurrency may lie in decentralized labor markets where users earn tokens by completing tasks in these networks instead of purchasing them.
"A billion people will get their first public key by earning crypto, not buying it. The next era of onramping is going to be powered by Internet Labor Markets," Sengupta stated.
Sengupta introduced this emerging model as "Internet Labor Markets" (ILM), where users are rewarded with digital assets for their contributions, whether through labor, resources, or expertise.
“People will earn their first cryptocurrency not by buying it, but by earning it,” he emphasized.
Key characteristics of ILM include:
- Dynamic task creation: tasks are defined through automated parameters, eliminating unnecessary bureaucracy.
- Automated verification processes: utilizing deterministic verification or collateral mechanisms for human evaluations.
Shifting from Speculation to Earning
The ILM concept is gaining momentum, particularly within the Solana ecosystem, where new projects are designed to reward users for completing verifiable tasks.
“There are only two ways to enter crypto: buy or earn. The next decade will see a shift towards earning,” Sengupta noted, predicting that this approach will surpass the previous buying method in both participation and volume.
He explained that blockchain technology facilitates these systems through automatic verification and immediate settlements, in contrast to traditional hiring, which can be slow and bureaucratic. In an ILM, once a task is verified, payment is executed instantly via a distributed ledger.
“Imagine a company formed to meet a market need, employing 50,000 people worldwide,” he suggested.
Efficient Digital Labor Coordination
Practically, tasks can range from providing bandwidth and data labeling for AI applications to managing energy consumption. Sengupta referred to the principles behind ILM as an evolution of decentralized physical infrastructure networks (DePIN), which have enabled:
- Fast, low-cost settlements.
- Verifiable results.
- Trust and reputation systems for resource providers.
Recent advancements in DePIN networks include improved incentive designs, more rigorous work verification, and normalization of earnings in tokens. Sengupta highlighted a future shift towards specific tasks with clear rewards, moving away from passive income models.
The Impact of AI on Labor
Sengupta believes AI will enhance human efficiency rather than replace it, transforming professions into modular roles. He envisions organizations with a small core team supported by a large network of on-demand workers, where speed of hiring and task verification becomes crucial.
This transition toward on-chain income is expected to boost consumption within crypto ecosystems, as individuals begin to utilize various crypto services. Sengupta concluded that the new entrants to crypto will be attracted not by speculative investments but by the opportunity to earn through meaningful work.
“The new user will not come to read a white paper or buy a meme coin. They will come because they can do work here, get paid, and stay—because the pay is better than anywhere else,” he remarked.
Additionally, analysts at River noted a significant rise in Bitcoin adoption among institutional investors, public companies, and governments.
