GG23 Retro Funding Experiments with Carl Cervone & Ed Flemming
May 6, 2025
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Join Carl Cervone, the founder of Open Source Observer, as he dives into the innovative world of Gitcoin and retro funding. He discusses the revolutionary metrics-based voting system that empowers community engagement and shapes project selection. Learn about the challenges faced during the GG23 funding experiment and how the new approach balances support for emerging projects with established initiatives. Cervone highlights the importance of strategic voting, urging participants to reflect on community values while allocating funds.
The podcast discusses the transformative potential of retro funding in Gitcoin, which rewards builders based on impactful contributions rather than popularity.
It highlights the significance of metrics-based voting in project funding, ensuring alignment with community values and fostering a sustainable ecosystem.
Deep dives
Revolutionizing Capital Allocation
The evolution of capital allocation in the tokenized internet is prioritized, emphasizing its significant potential in reshaping how resources are distributed across various stakeholders, including individuals, entities, and organizations. This process is no longer a mere transactional action; rather, it reflects individuals' values through blockchain technology, enabling them to program their beliefs into their financial decisions. With the rise of decentralized applications (dApps) and the backing of partnerships with developers and researchers, the goal is to construct a thorough capital allocation system that functions effectively on-chain. This innovative approach aims to create equitable economic models that better represent the interests of all participants.
Exploring Retro Funding Mechanisms
The podcast covers an experiment conducted within the Gitcoin ecosystem focused on retro funding, a system that rewards builders retroactively based on their impact metrics over time. This model addresses common criticisms of traditional funding methods, particularly the tendency for funding rounds to favor more popular projects, making it challenging for emerging builders to gain visibility. Retro funding allows badge holders to select the metrics they find most relevant, such as user engagement and new contributor rates, which are then used to determine the funding distribution for projects. This shift signifies a broader strategy in Gitcoin's multi-mechanism approach, aiming to promote growth for both established and newer initiatives.
Metrics-Based Voting Insights
The implementation of metrics-based voting in the retro funding experiment highlights the importance of setting clear goals aligned with Gitcoin's overarching mission of community support and growth. Project metrics, crafted with care, guide voters in expressing what they believe truly reflects the desired outcomes for the ecosystem. Participants are encouraged to focus on the most crucial signals to send to builders, considering factors like project sustainability, community contributions, and the potential for attracting new users. This strategic alignment ensures that funding decisions resonate with Gitcoin's values and fosters a vibrant environment for innovation and development.
00:00 Introduction to Alo Capital and Capital Allocation 03:15 Exploring Gitcoin Grants and Multi-Mechanism Funding 06:07 The Concept of Retrofunding in Gitcoin 08:51 Metrics-Based Voting and Project Selection 11:57 Challenges and Learnings from GG23 14:51 Community Engagement and Project Discoverability
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