What is Gitcoin? What problem will Gitcoin Grants 2.0 solve?

Web3’s largest public goods fundraising platform

Gitcoin, a community-managed open source project funding platform with a mission to build and fund digital public goods, released the governance token GTC in May 2021 for governance of Gitcoin Grants and GitcoinDAO.

This article will mainly introduce Gitcoin’s most influential product, Gitcoin Grants, which is also Web3’s largest fundraising pool for public goods. Gitcoin Grants run quarterly and provide a platform to seek funding and access to funding for public goods built using open source software such as Python, Rust, Ruby, JavaScript, Solidity, HTML, CSS, Design, etc. Project people to make connections.

In addition to Gitcoin Grants, Gitcoin also has a lot of interesting products to explore , including Town Square, a social networking marketplace that supports Web3, Gitcoin Chat hosted on its Discord, Gitcoin Hackathon held about once a month, Kudos, a medal of thanks, Open source collaboration bounties, Web3 startup scholarship program, developer matching engine, Web3 knowledge gamification Q&A platform Gitcoin Quests, these products can be found and used on the Gitcoin website.

Secondary financing

The key values ​​of Gitcoin are “fairness” and “trusted neutrality”. In order to distribute funds more fairly, Gitcoin adopts the method of quadratic financing. According to the number of contributors, additional funds are allocated from the matching pool to the most influential people. Powerful projects, Gitcoin is also one of the earliest platforms to adopt this method, and quadratic financing has been promoted and applied to multiple platforms.

In the donation logic of quadratic financing, the number of contributors is more important than the amount of funds funded. In short, quadratic financing means that the final funds obtained by the project are the “square of the sum of the square roots” of the funds donated by the contributors, and the part that exceeds the donations of individual raisers is matched by the funds in the Gitcoin prize pool. In quadratic financing, one contributor donates N DAI, and the distribution income is less than N people donating 1 DAI, so as to encourage more people who donate with a small amount of funds to participate, and also improve the distribution of more funds. And the cost of cheating.

Overview of Gitcoin Grants’ past donations

Gitcoin has distributed over $64 million in just 3 years, including $40 million in grants alone, from over 2 million contributors. Here’s a look back at the donations:

  • GR1 ran from February 1 to February 15, 2019, and a total of $25,000 was allocated to public programs, of which $13,000 was raised through 100 grants.
  • GR2 ran from March 5 to April 19, 2019, and a total of $50,000 was allocated to public programs, of which $56,000 was raised through 200 grants.
  • GR3 ran from September 15th to October 2nd, 2019, and a total of $100,000 was allocated to public projects, of which $170,000 was raised through 2,000 grants.
  • GR4 ran from January 6 to February 21, 2020, and a total of $200,000 was allocated to public projects, of which $180,000 was raised through 6,000 grants.
  • GR5 ran from March 23 to April 4, 2020, and a total of $250,000 was allocated to public programs, of which $220,000 was raised through 9,000 grants.
  • GR6 ran from June 15th to July 9th, 2020, with $403,000 allocated to public projects, $175,000 from the matching pool, $228,000 from the community, and 1,526 unique contributors donating to 695 projects.
  • GR7 took place from September 15th to October 2nd, 2020, with $720,000 allocated to 857 public projects, $450,000 from the matching pool, and $270,000 from the community.
  • GR8 ran from December 2nd to December 17th, 2020, with over $1.17 million allocated to public goods, $500,000 from the matching pool, $570,000 from the community, and $100,000 in the GR8 hacker prize, 50 million Independent contributors made 26,000 donations.
  • GR9 ran from March 10 to March 25, 2021, with over $1.9 million allocated to public goods, $500,000 from matching pools, over $1.3 million from the community, and 12,000 unique contributors made 160,000 times Donate.
  • GR10 ran from June 17 to July 1, 2021, with over $1.1 million allocated to public goods 14,500 unique contributors made 297,000 donations to 1,213 projects.
  • GR11 took place from September 8 to September 23, 2021, with over $6.1 million allocated to public goods, $3 million from matching pools, $3.1 million from the community, and 16,000 unique contributors contributing to 1,213 projects 425,000 donations.
  • GR12 ran from December 1st to December 16th, 2021, with more than $2.6 million allocated to public goods, $965,000 from matching pools, $1.59 million from the community, and 27,000 unique contributors contributing to 944 projects contribute.
  • GR13 took place from March 9th to March 24th, 2022, and over $4.6 million was allocated to public goods, of which $3.2 million came from the joint matching pool, $1.45 million from the community, and 17,000 unique contributors to over 1,000 The project made 300,000 donations.
  • GR14 runs from June 8 to June 23, 2022, with a total of $4.9 million distributed in the round, of which $3.2 million is from the joint matching pool, $1.7 million is from the community, and 44,000 contributors are over 1,250 Projects made nearly 600,000 donations.

From the above data, we can see that the amount raised by Gitcoin Grants has increased nearly 200 times from the initial $25,000 per round to the recent round of nearly $5 million, and the number of donated projects has also skyrocketed. Innovation in technology and models.

GR7 has added the option to use the Ethereum Layer 2 scaling solution  zkSync  to pay for donations, which reduces the handling fee for donations. At the same time, it can be seen that both the donation amount and the number of participants have grown faster after GR7. . In this GR15, Gitcoin also made new innovations.

Gitcoin Grants 2.0

In previous rounds of donations, many project parties regarded Gitcoin donors as members who contributed to the community and issued reward airdrops, so in recent rounds of donations, the phenomenon of “swiping donations” has become more and more frequent. Also known as Sybil Attacks, Sybil attackers create many accounts and use them to bypass reputation and account system rules to get disproportionate rewards or airdrops. “Witch Defense” is already one of Gitcoin’s biggest priorities.

According to statistics from the official website, in GR14  , 16,073 of the 44,886 contributors were detected as Sybil accounts. The Gitcoin team built Gitcoin Grants 2.0 after a lot of thought about the Sybil defense mechanism.

“Gitcoin Grants 1.0 is centralized and is nowhere near as trustworthy and neutral as we would like,” the team said. Additionally, due to the centralized nature of Grants 1.0, Gitcoin must maintain a “Personally Identifiable Information” (PII) containing Gitcoin Grants participants. grant database. “That’s why Gitcoin Grants have to evolve.

Grants 2.0 will consist of an “ecosystem” and a “platform.” The ecosystem can be thought of as a set of open source funding and governance mechanisms, with the platform consisting of dApps, a generic project registry frontend Grants Hub, a funding round manager, the Round Manager, and more, allowing any community to launch and manage their own self-hosted funding rounds.

What is Gitcoin? What problem will Gitcoin Grants 2.0 solve?

Gitcoin Passport is one of many Grants 2.0 tools that simplifies Sybil defenses for Gitcoin grants, Gitcoin Passport is an authentication protocol built on the Ceramic network, and in Grants 2.0 it aims to proactively verify people participating in grant rounds identity to prevent Sybil attacks, enabling fraud identification, provenance identification, privacy protection, verifiable credentials.

The beta version of Passport has been used in the funding round 14 (GR14) campaign, during which nearly 15,000 people set up their Gitcoin Passport IDs.

The utility of Gitcoin Grants in the current market

Adverse market conditions in a bear market can shift the hype away from a project’s token and monetization aspects to the impact a project will have on cryptocurrencies, but it’s also harder for developers of public goods to get funding for development in a crypto winter, so Gitcoin’s donation campaign is a blessing in disguise for these developers. During the summer 2021 market downturn, GR10 helped developers of public projects raise $1.8 million from over 296,000 different donations, with popular projects like BrightID POAP and  rekt.news  receiving funding in various sub-rounds.

For some Web3 Buidl, Gitcoin is the warm light in the crypto winter, and each of us needs a firewood!

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-is-gitcoin-what-problem-will-gitcoin-grants-2-0-solve/
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