Gitcoin is a decentralised autonomous organisation (DAO) that encourages coders and developers to contribute to the development of critical digital public infrastructure. Gitcoin understood that public goods are frequently hampered by a lack of financing and developer effort. These are non-rivalrous and non-excludable products, such as fresh air or open-source software in the digital realm.
Gitcoin provides numerous ways to reward the work of competent engineers on open-source software and foster collaboration among those who do so, with the goal of promoting open-source projects. Developer awards, bounties, hackathons, the Kernel Fellowship, and Kudos are some of the ways Gitcoin supports its purpose. Gitcoin also offers a variety of educational resources, technologies, and tools, as well as a community dedicated to the development of digital public infrastructure.
Gitcoin employs a proprietary financing method to motivate developers to work on open-source projects, in addition to cash incentives for participating in hackathons and bounties. It’s known as quadratic financing, and it rewards initiatives with a wide appeal from a variety of funding sources above others with equivalent liquidity but fewer sponsors.
Kevin Owocki introduced Gitcoin in November 2017, however, it has always been a community-driven project. So far, Gitcoin has enabled over 43,000 funders to access an audience of over 230,000 earners, resulting in almost $40 million in support for open-source software. Gitcoin has around 310,000 monthly active developers.
How Does Gitcoin Work?
Gitcoin encourages the development of open-source software in a variety of ways. Its Kernel Fellowship is an eight-week invite-only programme that connects and builds ties between Web3 engineers and projects. The Kernel Core Syllabus encourages collaborative learning and provides developers with a free and open-source platform on which to expand their Web3 knowledge base.
Sponsored hackathons, where participants receive prizes for their ideas across many protocols, and Kudos, unique NFT artworks that users can purchase and present as a method to demonstrate their appreciation for accomplished work, are two more networks and tools supplied by Gitcoin. GitHub is a well-known public repository where developers may demonstrate their work history.
What Sets Gitcoin Apart?
The patented democratic financing system known as quadratic funding is Gitcoin’s most notable feature. Individual donations are matched by donations from larger contributors from larger pools in quadratic financing. A specific algorithm guarantees that donations are not matched 1:1, but that programmes with greater support are given disproportionately more weight. For example, a project with 100 individual supporters will get more matching donations than a project with a single supporter who contributes the same monetary amount.
The idea behind quadratic funding is that when a larger audience consumes public goods, their development should be supported more widely rather than relying on a few large donations. It brings together the interests and requirements of funders, developers, and anyone interested in supporting the creation of digital public goods. Small contributors can support the initiatives they believe are most worthy, and developers have an incentive to concentrate on projects that aren’t always the most well-funded.
The matching donations are provided by Gitcoin Crypto Awards, but users can also construct their own matching pools and grants. In such a scenario, the user specifies the project title and description, as well as the ERC-20 token that will be used for donations.
The Media Coverage of Gitcoin
Ethereum inventor Vitalik Buterin is Gitcoin’s most well-known backer, having donated to the project and made public remarks on multiple occasions.
Buterin praised the quadratic financing method on his blog, saying it “may be as fundamentally transformational as the industrial-era arrival of mostly-free markets and constitutional democracy.” Buterin also encouraged support for Gitcoin awards on Twitter. He’s also contributed $5 million worth of AKITA, a dog-themed meme coin, to the initiative. The monies were delivered to the Gitcoin Crypto Grants community’s multisignature wallet, which is utilised to provide matching payments.
Buterin has previously emphasised the importance of projects like Gitcoin in shaping the DAO environment and developing digital public goods.