Supporting open-source software (OSS) financially has been a challenge longer than Ethereum's existence. Nonetheless, the emerging Ethereum ecosystem has provided one of the most promising solutions to date in the form of Gitcoin.
Gitcoin is versatile. It's an Ethereum-based decentralized application, an assembly of projects, and a hub for community interaction.
Above all else, Gitcoin and its many facets are single-mindedly focused on one goal: creating more stable funding avenues for open-source software within Ethereum's landscape.
One of its most significant achievements thus far has been its Gitcoin Grants initiative, with the latest iteration, Round 4, reaching its conclusion on January 21st after a fortnight of activity.
During this period, the initiative's novel 'quadratic funding' strategy empowered even small contributors to significantly support Ethereum projects with minimal investments in Dai, enhancing their impact.
Round 4 Sees Plenty of Participation
With $200,000 earmarked by sponsors for the latest grant round's quadratic matching, more than 1,000 community members eagerly took the chance to give their favorite projects a significant extra layer of funding.
Now that the first quarter's round has concluded, the statistics reflect it as a notable success.
In sum, Ethereum enthusiasts made over 5,000 contributions, collectively reaching beyond $100,000 in donations before including the additional matched funds.
FACTS: Gitcoin Grants Round 4 recorded 5,644 contributions from 1,188 unique participants, totaling $111,093 in a little over two weeks. š
Last Day! Contribute today at https://t.co/EuP1mCO11f https://t.co/eowJpF9IXI
ā Gitcoin ???? (@gitcoin) January 21, 2020
This round was unique since it introduced two distinct funding pools for grants: an 'Infrastructure' pool aimed at Ethereum development projects and a 'Community' pool dedicated to Ethereum media initiatives, with the latter being newly added.
Within the Infrastructure pool, the projects expected to receive the highest matched funds in Round 4 included 1) the Tornado.cash privacy solution for ETH, 2) DAppNode's user-friendly node operators, and 3) the Sablier dApp, renowned for its real-time money streaming abilities that have captured the attention of many Ethereum advocates.
On the Community side, the standout beneficiaries anticipated to draw the most matched funds were 1) the widely-followed Week in Ethereum News newsletter, 2) the Twitter news curation channel @antiprosynth, and 3) EthHub, an Ethereum community information hub.
Taking a broader view, this targeted funding will assist various Ethereum projects in beginning 2020 with stronger tactical positions. However, Gitcoin aims to encourage even more Dai contributions moving forward.
More Grant Rounds Coming
Round 4 generated significant excitement and positive sentiment within the Ethereum community and further solidified Gitcoin's adored status among Ethereum supporters. Notably, this round is merely the first of four planned for the year.
Gitcoin's Vivek Singh articulated the hope that regular rounds will allow recipients to leverage these grants not just as additional donations, but as foundational financial support for their activities in the Ethereum community.
Looking ahead, Gitcoin aspires to distribute $1.5 million in grant funds by the end of the year, with subsequent grant rounds scheduled for March, June, and September.
The Bigger Picture
Despite not addressing all of Ethereum's funding challenges, Gitcoin has already demonstrated significant potential and marked a promising advance in the right direction.
The project's existence speaks volumes about Ethereum, showcasing the robustness of the growing Ethereum ecosystem. In the broader crypto space, there's currently no equivalent to Gitcoin, underscoring Ethereum's advantages in smart contract technology, which Gitcoin skillfully employs, and its leadership as the foremost smart contracts platform.
Gitcoin Grants serve as a reflection, highlighting the interests and challenges the Ethereum community currently faces or prioritizes. For instance, the significant attention given to the Tornado privacy solution in Round 4 indicates a growing appreciation for privacy tools among Ethereum stakeholders as the broader blockchain project advances.
