Gitcoin Aims to Reach $1 Billion in Funds Distributed
Open-source software funding platform Gitcoin is doubling down on grants this year in its pursuit of distributing $1 billion in funds. Gitcoin refers to this phase as “the end game” and aims to achieve explosive growth through its funding allocation protocol Allo. With over $56 million already distributed through the Gitcoin Grants program, the project has established itself in the grants space, particularly within the Ethereum ecosystem.
Significant Changes in Funding Approach
Gitcoin plans to make significant changes to its funding approach this year. The team will focus on building technology, showcasing best practices, revamping the selection process and infrastructure, and increasing research and experimentation efforts. Two new business units, Grant Labs and Passport, will be established to increase autonomy and market fit for projects. Additionally, the Public Goods Network (PGN) will be phased out over the next six months due to a lack of adoption and sustainability.
The Year of the Grant
The new business units will allow Gitcoin to foster community and create more opportunities. The Ecosystem Collective subDAO will handle governance and community-related matters. The Citizen Grants Program has been announced, which will provide retroactive and proactive funding through direct grants instead of quadratic funding. The program consists of Citizens Retro, Citizens Innovate, and Citizens Forward, each focusing on different ecosystem needs.
Supporting Public Goods Through Blockchain
Gitcoin’s grants model is based on quadratic funding, which allows community members to vote on funding allocation based on the number of donors rather than the value of donations. While quadratic funding has gained widespread support, some partnerships have faced criticism for potential greenwashing efforts. Since 2019, Gitcoin has facilitated over 3.8 million donations, raising more than $56 million for public goods. The success of Gitcoin’s revamped structure and focus on grants will determine its future growth.
Hot Take: Gitcoin’s Ambitious Goal and Path to Growth
Gitcoin’s aim to reach $1 billion in funds distributed is an ambitious goal that reflects its commitment to supporting open-source projects and public goods. By doubling down on grants and implementing changes to its funding approach, Gitcoin seeks to achieve explosive growth. The establishment of new business units, the phasing out of the Public Goods Network, and the launch of the Citizen Grants Program demonstrate Gitcoin’s dedication to innovation and community development. As Gitcoin continues to evolve, it has the potential to make a significant impact in the crypto space and beyond.
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