https://beincrypto.com/learn/web3-grants-guide/
The landscape of public goods funding is undergoing a profound transformation. Driven by the rise of blockchain technology and decentralized ecosystems, grant programs in the web3 space fill a void that governments and venture funds have chosen not to prioritize. So, is there a universal grant structure to suit all funding needs? What challenges do grant-seeking project managers face? Here’s what you need to know about web3 grants and funding the virtuous innovation cycle.
In this guide:
web3 grants
Web3 grants are non-dilutive, meaning a given project can get the funding it needs without giving away any ownership. This ultimately incentivizes the participation and growth of said ecosystem. Using a variety of funding tools cultivated by the crypto community at large, ecosystem leaders and grants program managers (PMs), in particular, can supercharge their growth efforts.
Quadratic funding (QF) is the most promising experimental framework available. QF pools together small donations from multiple people and matches them with a larger amount of funding from a central fund. However, other options exist. Depending on the specific needs of the program, PMs can leverage prospective grants to discover new initiatives to fund within their ecosystem, a request for proposal (RFP) for focused problem-solving, retroactive grants for contributions already made, or research grants for innovation.
funding structure
Grant programs are not one-size-fits-all. Different grant approaches serve needs, offering project managers a range of tools to develop their projects. The dynamism in structure is most obvious in web3, given that crypto communities are known for their culture of experimentation and decentralization.
These communities are constantly trying out new ideas and governance models. This has bred a culture that has produced incredible innovations. Open-source software is the secret sauce, functioning as a digital-age public good. The added benefit of transparency provided by blockchain technology and the instantaneous, low-fee environment makes it simple to run web3 grant experiments.