Gitcoin Grants exist to seed the next generation of high impact builders within the Ethereum ecosystem. For the last few rounds, GG has empowered Community Rounds to fund what matters most to them through the newly rolled out governance process where communities have the opportunity to upload proposals, which are then reviewed and voted on by the external Community Council. The council votes on which rounds to accept into a GG round, and how to allocate extra matching funds from Gitcoin.

GG21 was Gitcoin’s first ever fully community-led round, meaning there was no Gitcoin-managed and run round taking center stage (OSS). The decentralization of the program and improvements to our processes were met with positive feedback; the shift towards more community-driven governance is being well-received. However, there were also some hurdles, particularly in education, communication, and the perceived impact of certain rounds. This review will highlight the overall results of GG21, what went well, where we faced difficulties, and the steps we plan to take to improve the program for future rounds.

GG21 Results

Community Rounds:

The Climate Solutions Round implemented a new hybrid funding model (50% QF, 50% COCM) and more specific eligibility criteria, resulting in support for 71 impactful climate projects worldwide. The revised eligibility criteria and detailed project review process for GG21 ensured more focused and impactful climate projects, though adjustments were needed mid-round. Paying out matching funds in Glo Dollars generated over $10,000 in additional funding for climate initiatives, amplifying the round's overall impact.

The Regen Coordi-Nation Round successfully united GreenPill Network, ReFi DAO, and Celo Public Goods, raising $110,000 to support regenerative communities using Web3 technology. Key innovations like Tunable Quadratic Funding (TQF) and the Celo Public Goods Signal Boosting initiative were tested, providing valuable insights for future funding rounds despite some technical challenges. Moving forward, the focus will be on impact measurement, retroactive funding, and continued collaboration to enhance regenerative efforts and Web3 adoption.

The OpenCivics Collaborative Research Round 03 distributed $38,750 in matching funds, though it saw a significant decline in crowdfunding donations and donor participation compared to the previous round. Introducing a fiat PayPal donation option through viaPrize successfully onboarded non-Web3 donors, enhancing accessibility and engagement. Implementing a $1,000 minimum matching amount ensured that all grantees received sufficient funding, improving the impact of their research projects.

The Web3 Grants Advancement Round funded 57 projects with a focus on building Allo Protocol infrastructure, contributing 125,000 ARB in matching funds and improving grant discoverability and transparency across Web3. Infrastructure projects like an on-chain grant registry and a grants reputation system were key innovations, making the grants ecosystem more accessible and accountable. The round attracted high-quality applicants from prominent Web3 communities, enhancing credibility and driving the success of funded projects.

The CollabTech Round  introduced a novel threshold mechanism where projects needed to meet a minimum funding level to receive funds, resulting in 16 of 29 projects reaching their threshold. The mechanism successfully redistributed 16% of the matching funds, with 3% of funds helping additional projects meet their threshold, increasing the overall impact. The experiment shows potential for improving capital allocation but requires more dedicated resources for education, product development, and accurate project assessments to be fully effective.

Ecosystem Rounds:

Ecosystem Rounds are a new category of Gitcoin Grants designed to engage large players in the web3 space. These rounds will focus on partnering with established ecosystems and protocols to leverage Gitcoin's platform, reach, and community for targeted funding initiatives. For the pilot in GG21, we invited partners to run as we test this new category and work to further enhance this offering.

As Gitcoin continues to evolve and grow its impact, we recognize the need to expand our reach and create sustainable funding models for public goods.

Expect to see more Ecosystem Rounds in GG22, as we expand this offering and partnership.

What Went Well

Ratio of Crowdfunding to Gitcoin.Eth Spend:

• In GG20, the crowdfunding was 55.36% of the amount pulled from our matching pool. In GG21, the crowdfunding was 51.35% of the amount pulled from our matching pool. As a goal, we will continue to aim to hit at least 50% crowdfunding comparative to the matched amount by us as a clear ROI. 

Great Council Engagement and Participation:

• Decentralization of the program received positive feedback, reflecting a shift towards more community-driven governance.

Program Processes and Improvements:

• The program saw a positive response to the process improvements and the quality of rounds, indicating the success of changes implemented in the last cycle.

Deeper Community Empowerment:

• GG21 saw community round matching increased by 15% and the amount of crowdfunding in community rounds by 30%, from GG20 to 21. 
• Additionally, taking a step back to look at the bigger picture shows the amount of funding to community rounds has increased by 67.29% from Round 17 to 21. 
• At the same time, community rounds are seeing lower levels of sybil and farming activity, and higher engagement from the donors who do participate. Among the indicators of this are a 25% decrease in donors, an 88% decrease in the number of donors donating less than $1, and a 72% increase in the average donation amount. 

What Didn’t Go Well

Challenges with Education and Communication:

• Some round operators participating in GG21 lacked experience and education on using Gitcoin’s product, leading to some confusion and inefficiencies. This means that Gitcoin has to increase its educational offerings.
• There were complaints about the timing of the rounds, with some rounds feeling rushed, and the preparation time being insufficient.
• Moving forward, it would be beneficial for Gitcoin to enable round operators to be more autonomous in running their rounds, ensuring thorough preparation, and actively contributing to their success.
• The median number of projects supported by donors remains at 1. This shows that we need to teach more people about how COCM works with tools like wtfiscocm.

Impact and Perception Issues:

• Despite increased funding, the impact of some rounds was unclear.
• The impact of Gitcoin not running OSS was significant, affecting metrics and donor engagement.
• GG21 experienced a 70% decrease in crowdfunding from GG20 and a 59% decrease in funding overall. It’s safe to attribute most of this to not running the OSS program which historically accounts for between 65% and 85% of GG funding. With a return to the OSS program in GG22, we expect these numbers to fully recover. 

Opportunities for Improvement

Improving Governance and Transparency:

• Quantifying the Value of Rounds:
  • We plan to introduce mechanisms to better quantify the impact of each round, ensuring that the effectiveness of funding allocations is clear and measurable.
• Clear KPIs for Community Rounds:
  • We will establish clear KPIs for community rounds to track success more effectively and provide actionable feedback to the community.

Process Enhancements:

• Enhanced Education for Round Operators:
  • We will implement better education initiatives for round operators on Gitcoin products and processes to ensure they are fully equipped to make informed decisions and be more autonomous with round operations.

Strengthening Eligibility and Enhancing Round Operator Standards for High-Impact Funding:

• Eligibility and Round Operator Requirements:
  • We will refine eligibility requirements for round participation, including mandating previous successful participation and completion of the round operator training. This will result in stricter eligibility criteria, but this is an important step in ensuring high quality rounds and higher value add to Gitcoin’s overall goals.
  • We are re-introducing a minimum matching amount from rounds wishing to participate in GG rounds that run alongside the OSS Program.

These adjustments are aimed at refining the governance structure, ensuring that future rounds are more transparent, fair, and impactful. By focusing on these areas, we hope to strengthen the community’s trust in the process and enhance the overall effectiveness of the Gitcoin Grants program.