Gitcoin Introduces ‘Direct Grants’
Cryptocurrency crowdfunding platform Gitcoin has announced on its official website that it has introduced Direct Grants. Direct Grants are different from traditional grants in that they can be awarded solely by the sponsoring entity, rather than a community-based decision.
Introducing Gitcoin Direct Grants
Grants provide early support for Web3 projects that foster progress while allowing teams and communities to remain independent. They help funders in the ecosystem – from well-known protocols to tokenized communities – develop the skills and creative assets they need to stay competitive. They also help attract and retain talent within the ecosystem by giving developers and creatives the opportunity to work on challenging projects.
How they differ from traditional grants
Direct Grants have some important differences from traditional grant mechanisms. Below are some of the key differences between Direct Grants and more traditional grants:
How funds are allocated: Direct Grants allocate a set amount of money directly to a specific project or individual. The amount of funding is predetermined and based on the criteria of the entity awarding these funds (usually the organization providing the funding).
Traditional grants: Traditional grants often use a community-based decision-making approach. For example, schemes like Quadratic Funding calculate funding amounts based on the number of contributors and the amount of funds contributed, and allocate funds based on community input.
Project type and stage:
Direct grants: Direct grants are primarily suitable for projects that are in their early stages or need funding to achieve a clear goal. They are used to provide funding to projects with specific goals to begin development or achieve a specific stage.
Traditional grants: Traditional community-driven grants are often better suited for projects that are ongoing or where community engagement is important. They are intended to foster more community engagement and a more transparent approach to funding.
Direct grants: Direct grants require relatively little community engagement. Funding decisions are often made centrally by the organization or entity providing the funding, with relatively little community input.
Traditional grants: Traditional community-driven grants foster community engagement, and the community’s collective decision-making plays an important role in the allocation of funds.
- Direct grants: Direct grants can provide primarily short-term value. This is because they can quickly provide funding to fill a gap or fulfill a need within the ecosystem.
- Traditional grants: Traditional community-driven grants focus on long-term community support and success, emphasizing long-term sustainability over short-term value.
- As such, direct grants and traditional grants differ in the purpose of the funding, nature of the project, level of community engagement, and transparency of funding, and which mechanism you choose will depend on your project’s needs and goals.
Gitcoin is a decentralized platform for funding open web development and enabling developers to create open source tools. It runs on the Ethereum blockchain and provides a decentralized marketplace for open source software development.
To foster the open web, Gitcoin supports peer-to-peer communities to share open source code and rewards developers for their collaboration in running open source protocols. It also provides ownership sharing and financial opportunities using Web3 technology.
Gitcoin supports open technologies, a public blockchain, free education, services such as newsletters, and privacy-related products.
Gitcoin describes itself as a community of builders, makers, and protocols to develop the future of the open internet. Gitcoin creates a community that supports a new infrastructure for Web 3 to foster development in the open source space.
Gitcoin is a platform that supports open source projects, and as of June 2021, it has over $20 million in funding, over 160,000 active developers per month, and over 1,600 projects created.
Gitcoin features and functionality
Features of Gitcoin
Gitcoin follows the principles of collaboration and community interdependence, providing greater opportunities. Here are the main features of Gitcoin
- Coding: GitCoin is a website that can be coded in a variety of programming languages.
Learning: Developers can learn new things while coding, solve problems, and provide solutions to the limitations of open source.
- Earnings: Gitcoin rewards developers who actively participate in the platform.
- Rewards and incentives: Gitcoin offers several rewards to developers to estimate the speed of development.
- Grants: Gitcoin provides grants to developers who need financial resources to develop new technologies.
How Gitcoin works
Gitcoin provides several ways to fund the work of talented developers and foster collaboration to build open source software.
In addition to financial incentives, Gitcoin uses proprietary funding mechanisms to encourage developers to participate in hackathons and bounties. Secondary funding is based on the appeal of the funding party and prioritization of projects, so there are fewer backers.
1. kernel fellowship
Gitcoin’s Kernel Fellowship is an invitation-only program that allows developers and projects to form relationships and build products over an eight-week period. The Kernel Fellowship promotes collaborative learning and provides developers with a free, open source platform to build a knowledge base that can be launched on the web3.
2. Bounty Program
Gitcoin’s bounty program allows users to offer bounties to developers to work on.
Each bounty includes details, a timeline for completion, and other relevant information. Developers can choose and contribute to the bounty, with larger projects typically offering larger rewards.
3. Secondary Funding Mechanism
Gitcoin’s proprietary secondary funding mechanism matches individual contributions with contributions from larger donors. This provides funding to ambitious developers in need of financial resources.
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