Where did the money for Gitcoin's matching pool come from?

official response

• Where does the Gitcoin Grants Matching Pool Money Come From? - 🧙 🧙‍♀️ Ideas and Open Discussion - Gitcoin Governance
  • Without going into too much detail, as far as the first five are concerned, the Ethereum Foundation has put out
    • Then more and more sponsors saw that track record.
  • As an aside though, the story of Vitalik Buterin donating 49 trillion Akita Inu tokens (AKITA) worth about $5 million at the time ([src https://www.gitcoin.co/blog/announcement-gitcoin- community-receives-generous-gift-from-vitalik-buterin]) is humorous, “500 million yen worth of Akita Inu donated”?

Where did Gitcoin’s matching pool money come from?

0xtkgshn … Ethereum Foundation and other big crypto companies like Gnosis and ConsenSys. Because they are making money on their own cryptoecosystem, they have an incentive to support ecosystem (otherwise they would taper off)

• 0xtkgshn I think it makes sense in the Bigtech movement that once you get big enough to a certain degree, you have to invest in the public, regardless of whether it is private or otherwise. This is one thing that connects with the context of “noblesse oblige”.

  • nishio I see. I understood that altruism and noblesse oblige are possible interpretations, but another way of putting it is that Ecosystem Investment is a long-term investment that yields good returns in the long run.

  • The Ethereum ecosystem can collect taxes and invest in public goods.
  • World lines where you can get paid for OSS development

$500k is being provided by the sponsor.

• This is the source of the matching pool
• There is a 2.5% cap on distributions from sponsors.
  • The distribution with the cap is mathematically losing robustness because it’s not Quadratic Funding, but they don’t seem to care about the details.
• Gitcoin Grants Round 15 kicks off Sept. 7

  • The GR15 Main Round will distribute $500kinmatchingfunds–withQuadraticFunding,that$500k can go a looong way in helping fund and sustain the web3 projects of tomorrow.

  • The Main Round is our longest-standing Grants Round. The Main Round is designed to support early-stage open-source software projects in web3. Our main round matching sponsors are: Yearn, Polygon, ENS, Figment, Chainlink, Starkware, Wicklow Capital, and 1inch!

  • The main round is unique because there is a 2.5% matching cap of the total main round pool – once a grant has hit $12.5K in matching funds from the GR15 main pool, they’re no longer eligible for additional matching. This matching cap makes sure that less popular grants receive matching funds! There are 30,000 individual donations.

• 1065 projects totaling $832k donated
• Did this donation itself go directly to each project and distributed from the matching pool by Quadratic Funding, which considered the act of donation as a vote?
• Gitcoin Grants Round 15: Round Results & Recap

  • We had 31,148 donors contributing to our Main Round, giving over $ 832k to 1,065 projects. WOW!

  • Funds will be allocated based on the QF mechanism with a maximum cap in place in order to ensure matching funds are evenly distributed across a breadth of grants. For GR15, matching funds were capped at $12,500 per grant.

2023-05-13

@0xtkgshn: .@nishio “Where did the money for Gitcoin’s matching pool come from?” There was a good answer to

• VitalikButerin Those who say “grant funding by whales is a bad mechanism, we need better thing X” are missing the point.

• Gitcoin grants is a trial run for quadratic funding. The long-run goal is to have tx fees from L2/apps (eg. rollup MEV auctions) feeding into the matching pool directly.

  • VitalikButerin Remember the primary dictum of good economic design: tax the congestible (aka scarce resources aka -ve externalities), subsidize the public goods.

  • Congestible: tx inclusion, MEV, short names, attention, status symbols…

  • Public goods: network security, dev, research, education..

• (DeepL) Gitcoin grants are a trial run for secondary funding. The long-term goal is to ensure that TX fees from L2/apps (e.g. roll-up MEV auctions) feed directly into the matching pool. Remember the basics of good economic design: tax what is congested (scarce resources, reverse externalities) and subsidize public goods (i.e. goods or services such as parks or highways).
  • tax congestion and subsidize public goods. Better way than for companies to donate to [/tkgshn/QF’s Matching Pool](https://scrapbox.io/tkgshn/QF’s Matching Pool).

• @nishio: @0xtkgshn So Ethereum is taking on one of the state’s key functions of “taking taxes from the popular and investing them in public goods”?

• It’s very good to have a long-term vision and a clear statement that “we’re just doing a TRIAL run on it right now”.

  • Tax what is popular and invest in public goods.

MEV: MEV Auction: Auctioning transaction ordering rights as a solution to Miner Extractable Value - Economics - Ethereum Research

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