Public goods funding

Mechanisms for funding public goods without relying on taxes

Years
2022–2026
Clients
Ethereum Foundation, Octant, Gitcoin
Venues
GreenPill
Collaborators
Magenta Ceiba, Sofía Cossar, Nestor Amesty, Cesar Brazon, Jordan Ellis

It's interesting to imagine a world where money just flows to the individuals and projects producing the most value for a given ecosystem. I've explored this pretty deeply in the context of crypto ecosystems, because I think the same mechanisms could power a fully networked economy that relies less on government and corporate spending, endogenously provisioning its own common pool resources instead.

DAO Drops

Over the course of 2022 I designed and led the team that built DAO Drops, a retroactive funding experiment that put the allocation of ecosystem funds directly in the hands of Ethereum users, with support from the Ethereum Foundation and Octant.

Anyone could nominate a project; voting power was calculated from a voter's past onchain activity rather than from tokens; and the first round dropped $250,000 to nominees in proportion to the votes they received. The round is now a forkable template, so any community can run its own.

GreenPill, 2023

fundpublicgoods.ai

In 2024 I designed fundpublicgoods.ai with Gitcoin, an agent that takes on the allocation side: tell it what you care about and it searches past funding rounds for the projects that fit, scores each on relevance, impact and funding need, and proposes how to split a donation between them.

Every score comes with the evaluation behind it, so a donor can argue with the agent and adjust the weights before sending anything.

The Fund Public Goods prompt: 'What would you like to fund?', with suggestions like social impact in South America, the Ethereum L2 ecosystem and academic research.
The agent's proposed allocation for a donor interested in EIPs: seven projects with weightings and scores, which the donor can select and adjust.
One project's evaluation: its description and its scores for relevance, impact and funding needs.

Mechanisms for provisioning public goods

At the Mechanism Institute we mapped the whole design space: how public goods funding actually works, how the onchain approaches compare with the state's, and which mechanisms are worth building next.