Benzinga had the opportunity to talk about Gitcoins impact with its founder, Kevin Owockifollowing his speech at EthCC 5, July 19-21, in Paris.
What happened: This came after the last Gitcoin Funding round closed, raising just over $5.1 million.
Gitcoin, the world’s largest crowdfunding platform Ethereum ETH/USD ecosystem, uses quadratic funding to optimize for the many rather than the few.
Using quadratic funding, Gitcoin launches a $3 million matching fund campaign and awards it to the most voted grant.
Gitcoin released “Gitcoin Passports” this summer to ensure individuals weren’t spinning many different wallets to act on as many different participants, known in the industry as the Sybil attack. The passport acts as a form of Sybil resistance, and it helps to ensure that funds are given to the many, not the wealthy few.
“So I see this opening up a whole new era of innovation in the Web3 space. Above all, it’s an innovation for everyday people. More democratic innovation, not just hyper finance, like the DeFi stuff “said Owocki.
Asked about the success of Gitcoin, Owocki said, “There is another category of skyrocketing success that really excites me, Uniswap and Aspire.finance are Gitcoin alumni. And, you know, now they’re successful billion-dollar projects, but before that, they started on Gitcoin.
Climate change: While Gitcoin has helped start some of the most successful projects in the Web3 ecosystem and provided many resources for digital public goods, Owocki seemed most thrilled that Gitcoin had begun funding real-world public good.
“We are in Paris during a record heat wave. I believe climate change is real. We’ve done a lot of climate rounds on Gitcoin subsidies, so just seeing carbon capture projects on the block chain As ClimaDAO as a Gitcoin grants alumnus, I’m really proud that we’re not only funding digital public goods, but real-world public goods as well,” Owocki said.
“And, you know, climate change is a failure of global coordination. And I really think crypto could be a force for good when it comes to climate solutions.”
Fundraising, bear market and crypto: Fundraising for anything can be tough, and with many crypto wallets down more than 80% from their peak, it looks like Gitcoin may struggle in such an environment.
Asked about this dilemma, Owocki put a rather positive spin on the situation: “Well, this is Gitcoin’s second bear market. It survived 2019 and 2020 because we actually have pretty solid revenue streams. I think we’re going to see a higher signal-to-noise ratio in people who come because they’re really interested in technology, not just because they want to get rich quick. And I think we’re going to see a lot of new innovative projects emerge from the bear market, just like we did in 2019.”
Building in the bear market has become a popular theme, both at EthCC 5 and in the wider ecosystem. The bear market naturally eliminates many ill-intentioned individuals from the space, leaving the truly passionate builders who see crypto technology as a vehicle for decentralization and good. Owocki explained what he expected to see out of the current bear market.
“So usually we see a 2.0 version of something that’s already there, and then we see one or two new things. So I think we’ll get DeFi 2.0 or 3.0. I think we’ll get the NFT 2.0s. We’ll get probably capital formation 3.0 like ICOs and ConstitutionDAO and then whatever comes after that I think we will get.
“And my hope for the new stuff is that there will be more democratic DAOs, Sybil-resistant DAOs, impact DAOs. I think that’s what I hope to see. And that is the future I hope to achieve with Gitcoin.“
Why is this important: Only time will tell what emerges from this bear market, but one thing is clear: the developers are getting to work now. While some see crypto bear markets as the death of the industry, those who have been around for a while know that this is when the industry is pushed forward.