What is Gitcoin grants?

Gitcoin Grants is a program created by Gitcoin to support the funding of digital public goods, particularly those within the Web3 ecosystem. It leverages a unique funding mechanism called quadratic funding to amplify community donations through matching funds provided by larger philanthropists or organizations, such as the Ethereum Foundation. This method aims to democratically distribute resources based on community preferences, ensuring funds go to projects that resonate most with the broader community 1 2 3.

Quadratic funding works by encouraging smaller donations from a larger number of individuals. Each dollar contributed is matched more significantly if many unique donors support the same project. This approach ensures that projects with broad support receive more funding, thus promoting equitable and effective allocation of resources 4 5.

Gitcoin Grants has been pivotal for open-source projects, enabling software developers to receive financial support for their contributions. This initiative addresses the traditional funding gap for open-source development, which typically lacks business models despite creating substantial economic value 6.