What is Gitcoin (GTC)?

TLDR Gitcoin (GTC) is a decentralized funding platform that empowers communities to support public goods and open-source projects in Web3 through innovative mechanisms like quadratic funding.

1. Decentralized funding engine – Uses community-driven grants to allocate over $63M to 3,700+ projects.
2. Governance token – GTC enables decentralized decision-making for Gitcoin’s DAO and identity verification via staking.
3. Ethereum-aligned infrastructure – Built on tools like Allo Protocol and Grants Stack to streamline transparent resource distribution.

Deep Dive

1. Purpose & Value Proposition

Gitcoin solves the underfunding of public goods—projects that benefit the ecosystem but lack profit incentives. Its flagship Grants Program uses quadratic funding, a mechanism that amplifies small donations with matching pools, ensuring community preferences drive allocations. Over 270,000 contributors have directed $63M+ to projects in DeFi, climate tech, and open-source software since 2017 (Gitcoin).

2. Technology & Ecosystem

Gitcoin’s infrastructure includes:
- Grants Stack: A platform for creating and managing funding rounds.
- Allo Protocol: A modular system for distributing capital transparently.
- Gitcoin Passport: A Sybil-resistant identity tool (now rebranded as Human Passport) that lets users stake GTC to prove their humanity, preventing bot manipulation in funding rounds.

3. Governance & Tokenomics

GTC serves two primary roles:
- DAO governance: Token holders vote on treasury management, grant funding priorities, and ecosystem upgrades.
- Staking for identity: Users lock GTC in Gitcoin Passport to build decentralized reputation scores, crucial for participating in trusted community initiatives.

Conclusion

Gitcoin is a cornerstone of Ethereum’s public goods ecosystem, blending decentralized governance with novel funding mechanics to sustain projects that traditional markets overlook. As Gitcoin evolves into its “3.0” phase—prioritizing community-led sensemaking over top-down decisions—how will its focus on network-first funding reshape the broader Web3 economy?