Gitcoin

Gitcoin, represented by the token GTC, is a cryptocurrency that powers a decentralized platform focused on fostering collaboration and development of open-source software projects. The platform was launched in November 2017 by Kevin Owocki, who aimed to solve two key problems he observed during his time as an engineering leader: the difficulty in finding and retaining top talent and the lack of monetization opportunities for open-source software developers.

The initial product was a bounties system, which allowed developers to work on open-source projects and receive payment in cryptocurrency. This MVP was self-funded by Owocki before Consensys agreed to fund the project, marking a significant step in the growth of Gitcoin. The partnership with Consensys provided access to top projects in the Ethereum ecosystem and expanded the team from one part-time member to several full-time members.

In 2018, Vitalik Buterin published a seminal paper on Quadratic Funding, a mechanism for democratically allocating philanthropic funds. This concept was later implemented in the Gitcoin Grants Program, which was launched in 2019 and has since distributed over $50 million to various projects across DeFi, climate, open source, and other areas.

In 2021, Gitcoin retroactively airdropped GTC tokens to early users and launched its governance process, which is managed by a decentralized autonomous organization (DAO). The GTC token is an ERC-20 token with a total supply of 100 million, allocated among early users, stakeholders, and the Gitcoin DAO. The token enables community ownership and decentralized stewardship of Gitcoin's products, protocols, and programs.

Today, Gitcoin continues to evolve, with initiatives such as Gitcoin Passport, which allows users to prove their humanity by staking GTC, and the Gitcoin Staked ETH Index (gtcETH), which provides diversified exposure to top liquid staking tokens while contributing to public goods.

Gitcoin (GTC) is a decentralized ecosystem that enables developers to earn rewards via various avenues. The network combines a growing community of projects, developers, and investors. As an Ethereum-based project, Gitcoin enjoys the full security of the world's largest Dapp ecosystem.

1. Quadratic Lands:

   • These are independent, self-promoting ecosystems that incorporate digital democracy to remain cohesive and guide future development.
   • They aim to create upward economic mobility for thousands of builders and ensure that projects reflecting the public good get funded.

2. Learning Sections:

   • These sections are ideal for new projects, enabling them to communicate and work with industry leaders.
   • Gitcoin regularly hosts workshops and roundtable discussions, mostly led by influential Web3 experts.

3. Connecting with Other Developers:

• Gitcoin allows developers to both promote and join other open-source projects.
• Open-source projects make their core coding public, providing more security and safety as the community can vet the platform for errors.
• This approach also enables interested developers to add to the project or integrate portions of the concept into their Dapps directly.

4. Funding:

   • Projects can secure funding within the Gitcoin community through a community voting mechanism.
   • This mechanism decides how the community treasury is spent.

5. Kernel Fellowship Program:

   • This 8-week course enables developers to level up their skills and become more valuable within the community.
   • Developers get familiar with other like-minded professionals, seeking to build lasting working relationships.

6. GTC Token:

• The GTC token is the main governance token of the network.
• It enables users to participate in the decentralized voting system.
• Users holding more GTC have more weight with their votes, ensuring those with a say are financially vested in the network.

• GitcoinDAO:

  • This DAO governs Gitcoin Grants and is responsible for ensuring the community's mission and purpose are upheld.
  • GTC is a governance token with no economic value that governs Gitcoin Grants and GitcoinDAO.

• Community Engagement:

  • The community is involved in various aspects, including planning and executing quarterly events, learning from these events, and repeating the process.
  • The community also participates in voting mechanisms to decide on funding allocations.

• Gitcoin Grants:

  • This program empowers everyday believers in web3 to drive funding toward what they believe matters.
  • The impact of individual donations is magnified by the use of the Quadratic Funding distribution mechanism.

• Gitcoin Passport:

  • This enables web3 citizens to prove their humanity by staking GTC.
  • Over 500,000 GTC has been staked as proof of humanity.

• Gitcoin Governance:

• GTC governs the decentralization of grants, manages disputes, and governs the treasury.

• Fund Public Goods:

  • There are many ways to fund and steward public goods through Gitcoin, including the Gitcoin Grants Program and partnerships with other projects.

• Partnerships:

  • Gitcoin collaborates with other projects, such as Rocket Pool and Lit Protocol, to further decentralization and support public goods.

Gitcoin (GTC) is a decentralized ecosystem that supports the development of web3 projects by providing a platform for funding, learning, and community engagement. Its governance token, GTC, plays a crucial role in ensuring the community's mission and purpose are upheld.

The Gitcoin (GTC) token has several strengths that contribute to its utility and value within the Gitcoin ecosystem:

1. Governance and Stewardship: GTC serves as the key instrument of governance on the Gitcoin platform, granting users the right to participate in various governance activities, including voting on proposals and shaping the platform's evolution. The more GTC a user holds, the greater their influence in the decision-making process.

2. Decentralized Governance: The GTC token enables community ownership and decentralized stewardship of Gitcoin's products, protocols, and programs. This decentralized governance model ensures that the community has a significant say in the direction and development of the platform.

3. Voting and Proposal Management: GTC holders can vote on proposals and initiatives through both off-chain and on-chain voting mechanisms, ensuring that all voices are heard and considered in the decision-making process.

4. Funding Allocation: GTC holders have a significant role in allocating funds for public goods through the Grants Matching pool, which creates an incentive to hold and use GTC for directing funds to projects that align with their interests.

5. Protocol Utility: GTC is used in various experiments, such as identity staking on Passport, which helps determine a "price of forgery" to reduce Sybil attacks. This utility adds value to the token and its holders.

6. Staking and Rewards: GTC can be staked to earn rewards, with some platforms offering high APY rates, providing an additional incentive for users to hold and participate with the token.

7. Partnerships and Collaborations: Gitcoin has partnerships with other projects, such as Rocket Pool and Lit Protocol, which further enhance the value and utility of GTC by expanding its use cases and influence within the broader Web3 ecosystem.

These strengths collectively contribute to the value proposition of the GTC token, making it an integral part of the Gitcoin ecosystem and a key instrument for community governance and participation.

Gitcoin (GTC) carries several financial risks that investors should be aware of. Firstly, it is considered a high-risk investment, and investors should be prepared to potentially lose all their invested capital. Additionally, the token's value can be volatile, and market fluctuations can significantly impact its price.

Another risk is that Gitcoin's governance token, GTC, is not designed to provide a risk-adjusted return. In fact, issuing unregistered securities with such expectations is illegal, and the token's utility is more focused on governance and funding public goods projects rather than generating profits.

Furthermore, the token's supply is capped, which can lead to scarcity and potential volatility when all 50 million tokens are unlocked. This volatility can be detrimental to investors who are not prepared for significant price swings.

Lastly, the platform's reliance on quadratic funding and community-driven governance can also introduce risks. If the community's funding decisions are not aligned with the project's goals, it can negatively impact the token's value and the overall success of the platform.

• Kevin Owocki: Co-founder of Gitcoin, also founded Supermodular, and has been involved in various web projects since 1999.
• Scott Moore: Co-founder of Gitcoin, a member of the team that has evolved the platform into a collection of tools and services.