Following its debut on January 12, DAO Drops is set to distribute $250,000 worth of USDC to individuals and projects that have impacted the Ethereum ecosystem.
The project, which describes itself as “an experiment in retroactive public goods funding,” is the brainchild of dOrg in collaboration with the Ethereum Foundation. dOrg will be responsible for all the operational aspects of executing the first iteration of the experiment – Round 1.
For the uninitiated, retroactive public goods funding entails rewarding projects for work already done as opposed to funding projects in anticipation of future work. Ethereum’s co-founder, Vitalik Buterin put it succinctly when he said:
The core principle behind the concept of retroactive public goods funding is simple: it’s easier to agree on what was useful than what will be useful.
That said, DAO Drops is currently receiving nominations and will distribute $250,000 USDC to eligible nominees in Round 1. The phase will last for three weeks, beginning on January 12. Anyone is allowed to submit the info of an individual or project they feel deserves funding.
Once the nomination phase ends, the experiment will move to the allocation phase, where Ethereum users can vote on which nominees deserve funding. Voting power will be calculated based on past on-chain activities such as DAO participation, smart contract deployments, and ecosystem event attendance. Subsequently, the $250,000 USDC funding will be distributed to nominees in proportion to votes received.
Although nomination is open to virtually anyone, it is worth emphasizing that DAO Drops is targeting “projects and individuals who have made impactful contributions to the Ethereum ecosystem but have not received proportional funding and recognition for doing so.” This may include areas such as “research, infrastructure and developer tools, user experience, community, and education.”