Giving Back - The Daily Gwei #146
Funding open source software one donation at a time.
Owocki from Gitcoin shared a really awesome chart today that shows that Gitcoin has reached a cumulative of $10 million+ funded for open source projects. This is split between Grants, Bounties, Tips, Kudos, Ads and Ecosystem with the majority coming from Gitcoin Grants.
This number is honestly pretty incredible and you can see that the growth in 2020 has been amazing. The majority of the funding came from Gitcoin Grants of course because of the quadratic matching mechanism that makes someone’s donation go a lot further than it normally would. For those unaware, during the matching rounds you can donate just 1 DAI and it can potentially be matched by up to 200x so technically you’re donating 200 DAI - these matched funds come from “sponsors” within the Ethereum ecosystem.
I think one of the main reasons that we’ve seen an explosion in Gitcoin Grant donations and matching funds in Q3 and Q4 of 2020 is because of the fact that people made a lot of money during DeFI summer and now want to reinvest that into things they care about. And why wouldn’t they? By donating to grants on Gitcoin and funding amazing projects, they’ll be ensuring that the Ethereum network and the apps built on top keep growing and innovating which leads to even more profits down the line. Then, these profits get reinvested into the ecosystem again and we can begin to have a sustainable open source world.
Gitcoin is an amazing tool not just for the grants feature but also for funding bounties. The way this works is that anyone can advertise a bounty for some work on Gitcoin (can be something as small as writing a snippet of code) and then someone else can come in and apply to do the work to earn crypto - basically a fully on-chain gig economy. Of course, there’s a reputation tied to the worker so that you can easily filter through the low and high quality submissions to do the work. I’ve actually advertised a few bounties on Gitcoin before for EthHub and it worked out very well with the work being of high quality!
I have no doubt that we’ll be seeing even more growth for Gitcoin throughout 2021 as the crypto bull market rages on and people have more money to give during the matching rounds. I’m especially looking forward to seeing even more companies. individuals and even DAOs contribute as a matching partner - if that’s something you’re interested in be sure to reach out to the Gitcoin team ahead of the next matching round.
Have a great day everyone,
Anthony Sassano
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All information presented above is for educational purposes only and should not be taken as investment advice.