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The cryptocurrency landscape has undergone notable variations in pricing, adoption, and interest over recent years. However, amid these changes, one essential concept vital to the success of Web3 appears to have plateaued – ‘open-source funding.’ While ‘web3′ continues to sustain average levels of interest, ‘open-source funding’ faces challenges in gaining prominence, despite its vibrant and evolving nature.
Yet, beneath the surface, a thriving ecosystem is transforming the potential of open-source funding. Key organizations such as Gitcoin and the Public Goods Network (PGN) are instrumental in advancing public goods through innovative initiatives like Quadratic Funding (QF).
Quadratic Funding, utilized by Gitcoin, is recognized as a unique crowdfunding strategy that promotes community participation. Through QF, community members ‘vote’ with their contributions to distribute funding among various projects. This method aggregates small donations, which are then matched with a larger sum from a central fund. The focus on the number of contributors enhances shared ownership and community involvement.
For instance, Gitcoin has allocated over $50 million across more than 100 Quadratic Funding rounds, aiding organizations like UNICEF with blockchain-based public goods financing. Furthermore, Gitcoin emphasizes regenerative projects, providing grants for nature-based solutions, clean energy, and support for indigenous communities.
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Despite possible obstacles, QF offers an innovative means of empowering communities and influencing the future of cryptocurrency initiatives. By prioritizing community engagement over the total donation amount, QF can significantly contribute to promoting the greater good.
The Public Goods Network (PGN), a collaborative initiative backed by Gitcoin, exemplifies innovation through quadratic funding. Functioning as a cost-effective Layer 2 (L2) OP Chain, PGN allocates most net sequencer fees towards public goods projects. By pooling gas fees from PGN transactions to finance public goods and utilizing ETH as the native token, PGN establishes a sustainable funding mechanism for these organizations.
PGN’s mission is bolstered by a coalition of public goods advocates and is supported by the infrastructure platform Conduit. Its objective is to become a digital hub for individuals interested in developing and financing public goods in the digital space.
Despite the absence of mainstream media attention, the open-source funding sector is flourishing. Organizations like Gitcoin and PGN merit acknowledgment for their commitment to supporting public goods in a sustainable and dependable manner. By preserving the decentralized and open principles of Web3, these initiatives are paving the way for a future where open-source funding is essential in fostering the greater good.
The post Op-ed: Let’s talk about Gitcoin – the Silence Around Open Source Funding is Deafening appeared first on BitcoinWorld.
