We're excited to share the results of our recent Avalanche ecosystem funding rounds, concluded on March 11th 2025, and conducted in partnership with Gitcoin. These quadratic funding rounds focused on two critical areas of the Avalanche ecosystem: DeFi and Gaming. Each round supported projects building innovative solutions on Avalanche.

This marks another step in Avalanche’s ongoing collaboration with Gitcoin to enable community-driven funding at scale. By leveraging Gitcoin’s grants infrastructure and pioneering matching models, Avalanche is empowering builders through more equitable, transparent, and participatory capital allocation.

To view all past, live and upcoming Avalanche rounds running on Gitcoin, visit the Avalanche Foundation Community Grants page.

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TL;DR

• Two specialized tracks: DeFi and Gaming
• Matching pool per track: 7,000 AVAX
• Total DeFi crowdfunding: $17,118.36 (12.95% of the matching pool)
• Total Gaming crowdfunding: $12,410.07 (9.39% of the matching pool)
• Enhanced funding methodology: 50% blend of Connection-Oriented Cluster-Matching (COCM) and Quadratic Funding (QF)
• Projects supported: 22 DeFi projects and 14 Gaming projects

Funding Structure

Each round was designed with identical matching pools but attracted distinct participation profiles, reflecting the unique characteristics of the DeFi and Gaming sectors within the Avalanche ecosystem.

A 10% matching cap was implemented across both rounds, ensuring no project could receive more than 700 AVAX. This mechanism was designed to promote equitable distribution and discourage the concentration of resources among a few dominant projects.

The higher participation rate in the DeFi round (22 projects vs. 14 in Gaming) reflects the mature state of DeFi development on Avalanche. In contrast, the Gaming track shows emerging growth and significant untapped potential for future rounds.

Methodology

We employed a funding distribution approach for these rounds that blended traditional Quadratic Funding (QF) with Connection-Oriented Cluster Matching (COCM) in a 50/50 ratio.

Quadratic Funding helps solve coordination failures by allowing community members to fund what matters to them while amplifying their impact. However, its assumption that people make independent decisions can sometimes be exploited to unfairly influence the distribution of matching funds.

Connection-Oriented Cluster-Matching (COCM) addresses this limitation by quantifying how coordinated groups of actors are likely to be based on the social signals they have in common. Projects backed by more independent agents receive greater matching funds, while those with highly coordinated support networks receive proportionally less.

After analyzing the donation patterns and connection graphs for both rounds, we determined that a 50% blend of COCM and QF would provide the most equitable distribution while preserving the community-driven nature of the funding process.

Key Metrics & Analysis

The donation patterns across both rounds revealed important insights about our community's engagement.

The median and average contributions indicate a healthy mix of small grassroots donors and larger stakeholders supporting projects. The contribution distribution analysis showed most donations clustered in the $1-20 range, creating a foundation of community support that was effectively amplified through the matching pool.

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Community Engagement & Network Analysis

Our connection graph analysis revealed distinct participation patterns between the two rounds, providing valuable insights into the ecosystem's development:

DeFi Round (379 voters): The network visualization displayed a densely interconnected core, with most projects receiving support from donors who contributed across multiple projects.

Gaming Round (537 voters): While attracting more unique voters, the round showed more isolated clusters of support, with several projects positioned on the periphery of the network graph.

These contrasting patterns highlight why we used our blended COCM/QF approach—it allowed us to recognize and account for different community organization models while maintaining fair distribution principles.

The COCM component was particularly effective in identifying potential coordination among donors in the Gaming round, ensuring that matching funds were distributed based on genuine community signals rather than concentrated voting blocks.

Both rounds generally appeared clean based on the visual representation of donation patterns and the COCM analysis. Most projects received support from diverse donors who also contributed to other projects.

The complete list of funded projects and their respective matching amounts can be found on the DeFi Round Report Card and Gaming Round Report Card.

Impact Analysis

These funding rounds have significant implications for the Avalanche ecosystem:

1. Diversified Development: By supporting DeFi infrastructure and gaming applications, we're fostering a well-rounded ecosystem capable of serving various use cases.
2. Community Alignment: The high participation rates and substantial crowd contributions (12.95% for DeFi and 9.39% for Gaming) indicate strong community alignment with the selected projects.
3. Fair Resource Allocation: Our blended funding approach ensured that resources were distributed based on genuine community support rather than coordinated voting patterns.
4. Ecosystem Growth: The funded projects span various applications and infrastructure components, setting the stage for accelerated ecosystem growth and increased user adoption.

Conclusion

The successful completion of these Avalanche ecosystem funding rounds represents a significant milestone in our community development strategy. By supporting both DeFi and Gaming projects, we're building a robust foundation for sustained growth within the Avalanche ecosystem.

We thank all participants who made these rounds successful—project teams, voters, and the Avalanche community. Your engagement and support continue to strengthen the ecosystem and drive innovation forward.

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