What is Gitcoin (GTC)?

Deep Dive

1. Purpose & Value Proposition

Gitcoin addresses the underfunding of public goods in web3 by creating a decentralized coordination layer for Ethereum. Its Grants Program has directed over $60M to 3,700+ projects since 2017, focusing on areas like decentralized finance (DeFi), climate tech, and open-source software. Unlike traditional grant systems, Gitcoin uses quadratic funding—a mechanism that amplifies small donations with matching pools, ensuring funding reflects broad community preferences rather than whale dominance.

2. Technology & Ecosystem

Gitcoin’s ecosystem includes:
- Grants Stack: A toolkit for communities to launch and manage funding rounds.
- Allo Protocol: A modular system for distributing capital transparently onchain.
- Gitcoin Passport: A decentralized identity tool where users stake GTC to prove they’re human, countering Sybil attacks.

Recent upgrades like Gitcoin 3.0 emphasize Sensemaking, a framework where Ethereum builders identify high-impact problems to solve, ensuring funding targets meaningful, solvable challenges.

3. Tokenomics & Governance

GTC serves three primary roles:
- Governance: Token holders vote on treasury management, grant rounds, and protocol upgrades.
- Staking: 500,000+ GTC is staked in Passport to validate user identities.
- Ecosystem Incentives: Rewards from partnerships (e.g., gtcETH, a liquid staking token) flow back into Gitcoin’s funding pools.

The DAO structure ensures decisions are community-led, with no single entity controlling the platform’s direction.

Conclusion

Gitcoin is Ethereum’s economic coordination layer, blending democratic funding mechanisms, decentralized governance, and identity tools to sustain web3’s growth. By aligning capital with community priorities, it ensures critical infrastructure isn’t overlooked. As quadratic funding evolves, can Gitcoin scale its impact without sacrificing decentralization?