The world of cryptocurrency has experienced significant fluctuations in prices, adoption, and attention over the past few years. However, amidst these swings, one crucial term that is integral to the success of Web3 has seemingly stagnated – ‘open-source funding.’ While ‘web3’ continues to maintain average interest levels, ‘open-source funding’ struggles to gain visibility, despite its dynamic and evolving reality.
But beneath the surface, a flourishing ecosystem is redefining the possibilities of open-source funding. Leading organizations like Gitcoin and the Public Goods Network (PGN) are playing a pivotal role in supporting public goods through unique initiatives like Quadratic Funding (QF).
Quadratic Funding, employed by Gitcoin, stands out as a distinctive crowdfunding approach that encourages community involvement. With QF, community members ‘vote’ with their contributions to allocate funding to various projects. The method pools together small donations, matching them with a larger amount from a central fund. The emphasis on the number of contributors fosters shared ownership and community engagement.
Gitcoin, for example, has distributed over $50 million across more than 100 Quadratic Funding rounds, supporting institutions like UNICEF with blockchain-based public goods funding. Additionally, Gitcoin focuses on regenerative initiatives, issuing grants for nature-based solutions, clean energy, and indigenous communities.
Despite potential challenges, QF presents a novel way of empowering communities and shaping the future of cryptocurrency projects. By highlighting the importance of community involvement over the total donation amount, QF can play a significant role in supporting the greater good.
The Public Goods Network (PGN), a collaborative project supported by Gitcoin, is another prime example of innovation through quadratic funding. Operating as a low-cost Layer 2 (L2) OP Chain, PGN directs the majority of net sequencer fees towards public goods initiatives. By pooling gas fees from PGN transactions to support public goods, and using ETH as the native token, PGN creates a sustainable funding source for these organizations.
PGN’s mission is supported by an alliance of public goods advocates and is powered by the infrastructure platform Conduit. Its goal is to become a digital focal point for those interested in building and funding public goods in the digital realm.
Despite the lack of mainstream media coverage, the open-source funding sector is thriving. Organizations like Gitcoin and PGN deserve recognition for their efforts in supporting public goods sustainably and reliably. By safeguarding the decentralized and open ethos of Web3, these initiatives are shaping a future where open-source funding plays a critical role in supporting the greater good.
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