Gitcoin, a public Ethereum-based fundraising platform, has launched a governance token.
- The token used to oversee the Gitcoin ecosystem has no economic value and claims no financial rights.
With the mission to empower communities to build and fund open source products, Gitcoin has introduced the GTC token and DAO, which it says will govern the platform and allow it to decentralize. With hundreds of open-source crypto projects having funding built into their protocols, this has brought billions of dollars of funding to open source ecosystems for the first time in internet history. Through Quadratic Funding, Gitcoin has also provided nearly $16 million to projects thanks to massive tailwinds due to the crypto industry’s growth. Amidst this growth, Gitcoin is now evolving so that it can be credibly neutral as such introducing DAO (decentralized autonomous organization) to govern Gitcoin. The official announcement reads,
“Now that products like Gitcoin Grants have become a cornerstone of the Ethereum funding ecosystem, it’s extremely important that its ongoing development be managed directly by and for the Gitcoin community.”
At its inception, Gitcoin’s DAO will oversee a community treasury of GTC tokens. It will further offer a governance framework for delegates called Gitcoin Stewards to participate in key ecosystem decisions such as fund allocation, matching pools, and grant collusion. GTC’s total supply is capped at 100 million, with 50% of it allocated to Gitcoin DAO, 35% to existing stakeholders, and 15% to be airdropped to past users of Gitcoin. The platform will introduce new ways for GTC to influence sybil-resistance, grant curation, democratized open-source fund allocation, and more in the coming months.