Gitcoin Unveils Grants 2.0: A More Modular and Decentralized Approach to Funding Public Goods
Gitcoin, a leading platform for funding public goods in the Ethereum ecosystem, has launched a major upgrade known as Gitcoin 2.0. The new version features a more modular and decentralized architecture focused on capital allocation. Key changes include open sourced protocols, support for funding mechanisms beyond quadratic funding, and multi-chain interoperability.
A core component of 2.0 is Allo Protocol, designed as an extensible capital allocation protocol. Allo embraces both breadth through its strategy library and depth via its stable, secure core protocol for managing funding pools. Developers can leverage Allo to precisely allocate capital at scale for a range of use cases.
Built on Allo, Grants Stack offers an easy-to-use grants management application. Grants Stack aims to provide enterprise-grade reliability while remaining open source. It reflects learnings from 19 rounds of Gitcoin Grants, distributing over $59 million to date. The goal is to empower any grants manager to effectively run programs.
Gitcoin is expanding beyond Ethereum to Polygon, Optimism and other Layer 2 networks. This allows Gitcoin to fund public goods more broadly across web3. Gitcoin has run pioneering programs with partners like UNICEF, demonstrating capital allocation solutions for various industries.
A core thesis explored in the recent whitepaper is that "grants = growth." Data analysis shows $1 million in Gitcoin Grants funding has supported 7+ long-term full-time developers, illustrating ability to accelerate builder retention. This contrasts with just 0.1 developers per $1 million in VC funding.
As more assets become tokenized on chain, the market size for capital allocation tools will likely see 100x growth. Gitcoin aims to lead category evolution through grants innovation and exploring new funding models that align with community values.
The shift to Gitcoin 2.0 architecture establishes a milestone in capital allocation practices for public goods. By embracing decentralization and flexibility, Gitcoin strengthens capabilities to enrich ecosystems across web3. The solutions showcase the vast possibilities to reinvent funding through crypto-native primitives.
