Digital recruitment platform Job Protocol has raised £1.3m for its crowd-based hiring system that uses blockchain technology.
Founded in 2022, Job Protocol is looking to replace traditional recruiters with a crowdsourcing platform in which companies list job openings alongside a “bounty” fee paid to whichever recruitment firm or freelance recruiter finds the right candidate.
Recruiters submit their candidates to Job Protocol, which then filters the list of potential employees by relevance and submits them to hiring companies. It takes a 10% network fee which is paid on top of the bounty.
The bounties, for now, are paid in the crypto token USDC. However, the company is looking at other tokens.
“Even though there’s much talk of a looming recession, a lot of strong web3 companies are hiring and we notice a growing interest of people to find work in the web3 industry. This bear market is indeed used as a build market,” the company said.
“We’re excited to see our global recruitment network bring equal opportunities to both talent partners and recruits.”
In addition to sourcing candidates to fill positions, the startup also offers smart contracts, which are digital replacements for traditional documents that are stored on the blockchain.
The conditions of the contract are written into the code and distributed across a decentralised network. The theoretical advantage is that conditions in the contract are trackable and immutable.
The Law Commission found in November 2021 that “England and Wales is clearly able to facilitate and support the use of smart legal contracts”. However, there are caveats that businesses using them should be aware of, such as ensuring smart contracts also contain natural language along with code to avoid disputes.
The company has listed Binance, Zerion, Gnosis Safe, Superfluid, Cow Protocol, and Kleros as companies using its platform to recruit.
The pre-seed round came from Tioga Capital, Portal Ventures, and Syndicate One, along with several angel investors in the crypto asset industry.