Gitcoin: Innovative Funding Platform for Open Source Ecosystem

Gitcoin is an Open Source platform based on Ethereum, designed to provide rewards and incentives for developers, designers, and other contributors to the cryptocurrency ecosystem. Its main goal is to help Open Source projects gain funding support while encouraging more people to participate in project development.

Main Features of Gitcoin

1. Run donation projects: Create and deploy funding projects, manage fund allocation and payments.

2. Fundraising: Create a project overview, apply for funding rounds, and verify project credential ownership.

3. Project Donations: Browse the beneficiaries during the funding rounds and donate to different projects.

4. Build Protocol: Gitcoin is launching Grants Stack, allowing the community to collaboratively create, manage, and develop grant programs.

Development History

• 2017: Gitcoin was founded
• 2018: Release of the quadratic donation paper
• 2019: Funding program launched
• 2021: GTC governance token launched
• 2023: $50 million allocated

Quadratic Donation Matching Mechanism

The quadratic donation matching mechanism is a funding allocation method based on the number of donors, aimed at achieving fair funding for public goods and projects. It reduces the influence of large donors on funding outcomes and encourages more people to participate in donations. The core principle of this mechanism is that the matching amount of donations is related to the square of the number of donors, rather than being proportional to the size of the donation amount.

Gitcoin's Vision

Gitcoin is dedicated to building and funding digital public goods, connecting the builder community and co-creating the future of an Open Source network. Its core principles include:

• Open Network: P2P community builds Open Source code, shares open data, and adopts open governance.
• Open Source: Encourage open source builders to work in a collaborative culture and get rewarded.
• Open Economy: Build Web3 technologies that support financial freedom, shared ownership, and collaborative decision-making.

Main Sections of Gitcoin

1. Bounty: The project owner publishes tasks and provides cryptocurrency rewards for completing the tasks.

2. Funding Program (Gitcoin Grants): A grant program based on quadratic donation matching, providing sustainable funding sources for Open Source projects.

3. Virtual Hackathon: Regularly hold online events to encourage developers to participate in Open Source project development.

4. Gitcoin Passport: A user's digital identity that records their contributions, participation, and reputation on the platform, enhancing fraud prevention. The Passport score threshold is 21.76, with a maximum score of 100.

Token Economics

In May 2021, Gitcoin launched the governance token GTC. The total supply of GTC is 100 million, with the initial distribution as follows:

• Airdrop: 15%
• Gitcoin DAO: 50%
• Existing Stakeholders: 35%

As of March 24, 2023, the circulating supply of GTC is 59,913,342, with a circulating market value of approximately $133 million.

The main uses of GTC include:

• Vote on governance proposals on Snapshot
• Determine the areas of focus for the Gitcoin funding program
• Support the development of the Open Source protocol ecosystem

Gitcoin DAO

Gitcoin adopts a DAO structure for community governance and operates on a quarterly basis. Each quarter, Gitcoin Grants Rounds and Hackathons are held, deploying a large amount of funds to the community.

Ways to participate in the Gitcoin DAO:

• Register for the weekly DAO summary
• Participate in discussions on Discord, governance forums, or Twitter
• View Available Positions
• Earn, learn, or fund projects using Gitcoin

Governance Process

The governance process of Gitcoin includes: Discussion → Proposal → Workflow → CSDO → Funding → Voting

Community members can participate in governance in the following ways:

• Join Discord and interact with the community
• Participate in proposal discussions in the governance forum
• Delegate tokens or become a manager
• Vote on Snapshot and Tally

Financing Situation

• April 2021: Secured $11.3 million in funding led by Paradigm
• November 2021: Received a $500,000 grant from the Ethereum Foundation

Similar platform

1. Bounties Network: Decentralized bounty task platform
2. SourceCred: A tool for quantifying and rewarding contributions to Open Source projects.
3. CLR.Fund: A decentralized funding platform utilizing a quadratic donation matching mechanism.

Summary

Gitcoin, as a bounty distribution platform connecting developers, project parties, and users, plays an important role in promoting the development of the Open Source ecosystem. With the launch of new grant agreements and the integration of Gitcoin Passport, the platform is continuously optimizing its operational mechanisms, providing funding support for blockchain projects while also enhancing the vitality of the entire market. In the future, Gitcoin will continue to explore the connection between the virtual and the real, contributing to the sustainable development of the Open Source ecosystem.