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Source: Maxlion
Original title: How will Grants Protocol launched by Gitcoin change on-chain financing and donations
1 October 7, according to the official Twitter , Gitcoin will launch a new product Grants Protocol, which is a financing infrastructure that allows any community to launch its own grant program that includes community decisions. It is currently in the closed beta stage. The original Gitcoin Grants will continue to operate as a Web3 public product. Over the next few months, Gitcoin will open its initial round of grants with its design partners. What problems does the
product solve? How will it upgrade the existing business of Gitcoin? Odaily Planet Daily will analyze this article.
First, let’s talk about some of the pain points of Gitcoin.
Funding Limits
The current quadratic funding pool is mainly derived from donations from leading project parties in Web3. The 15th round of Gitcoin Grants, which started on September 7, distributed a total of $4.4 million in grants, with $830,000 from community donations, and most of them came from some of the leading organizations in Web3.
According to the figure below, we can know the specific information of the main donors of Gitcoin in the 11th round of last year. Most of them are famous project parties on Ethereum.
But if the funding source can be expanded to other ecosystems as well as Web2, this will further expand the funding pool and increase the funding capacity of the project.
Issue Restrictions
Currently, there are issues with the issue of limited-time donation and review thresholds for new projects participating in donation activities on Gitcoin.
Regarding limited-time donation, there is a clear time for the start and end of the Gitcoin Grants donation event, and it is usually held once a quarter. For projects, this means that they can only receive donations from the Gitcoin Grants quadratic fund pool on Gitcoin for a specified time, and when Gitcoin's Grant Round ends, the donation channel on Gitcoin will be closed, which will limit project parties' financing.
Regarding the review threshold, every new project uploaded to Gitcoin requires submitting fixed information and waiting for review. Each time Gitcoin donation plan has specific qualification requirements. Although inferior projects can be screened to ensure project quality, it also sets certain thresholds for new projects to participate in donation.
platform splits
This is a problem faced by most blockchain funding platforms.
Although Gitcoin is considered by most people to be the "army" of Ethereum, it has actually become an incubator for many Ethereum projects. But it does not restrict projects from other ecosystems from participating in Gitcoin Grants, and we can find that Algorand and Solana also carry out bounty tasks on Gitcoin.
However, there are still ecosystems outside Ethereum such as Cosmos, Avalanche, Aptos, etc. that have not participated in Grants and carried out hackathons on Gitcoin.
Putting aside the consideration of ecological competition, the lack of customization may be the reason why they did not choose Gitcoin. Other alternative options include platforms such as Dorahack, Credencys Solutions, E-Consulting, Archer and Qiscus, which can also carry out ecosystem project funding, hackathon and bounty tasks.
, but multiple funding platforms have caused the separation of funds and developers. From the perspective of blockchain, different ecosystems conduct financing on different platforms will break the efficiency of funds use. For example, the quadratic fund pool on Ethereum often has surplus, and some emerging small ecosystems may not have enough funding, which will lead to a mismatch of funds.
From the developer's perspective, when he develops a multi-chain project such as a cross-chain bridge, he often needs to submit his own project on two or even multiple platforms to apply for funding, which will also cause a burden on the developer. Grants Protocol, a new product launched by
Gitcoin, may solve the above pain points for Gitcoin.
Grants Protocol Innovative
According to Gitcoin's introduction, Grants Protocol, as the next generation open financing platform incubated by Gitcoin, can help individuals and organizations build grant programs on their own. Unlike Gitcoin, Grant Protocol also supports crowdfunding (similar to JuiceBox) and community-led grant programs. For example, a DAO can publish its own project on Grants Protocol, and users and organizations outside of the DAO can also raise funds for the project.
has a lower threshold of
Compared with Gitcoin, Grants Protocol has a lower financing threshold. Grants Protocol allows all communities and ecosystems to finance everyone through Grants Protocol, with a significantly lower threshold. It can be foreseen that some DAOs will appear on Grants Protocol that will specifically raise social financing for again, and Grants Protocol may become an LP platform for investing in DAO.
More customized
Grants Protocol will provide modular and flexible open source tools to help the community achieve more customized grant programs and customized financing needs for different projects. For example, Grants Protocol can provide monthly, weekly or even day funding programs that Gitcoin Grants cannot provide.
, unlike Gitcoin’s eco-round funding, Grants Protocol can provide more diverse funding programs to promote the development of products on more tracks.
In terms of bounty, Grants Protocol also supports various ecosystems and communities to release more customized bounty tasks, which may be a replacement for task tools like DeWork to a certain extent, and at the same time it is more convenient for community task management.
is more unified
. Because of the customization, this may allow all ecosystems to gradually shift to sharing the same financing platform, allowing developers and projects to have more financing opportunities and improve funding efficiency without having to wait for the supply of quadratic funds at a specific time every quarter like the previous Gitcoin Grants.
With the launch of Grants Protocol in the future, we can expect Grant Protocol itself to become a public goods – a financing infrastructure for all individuals, groups, communities, and ecosystems. There are more project parties that can finance at a lower cost and faster rate, and connect other resources to promote the development of the entire crypto community.
Editor in charge: Felix
