Hi There,
In my article today, I will share a lot of information about what is gitcoin and how to donate a grant before the Gitcoin Grant Beta Round (April 25 - May 9, 2023)
What is Gitcoin?#
Gitcoin; It is a DAO and WEB3 platform that promotes the development of digital public goods, the creation of financial freedom and supports the construction of the future of the open network. If you are a software developer or have different project ideas, you can promote your project, connect with different projects and participate in the grant support program, and get grant support for your project. Also, by participating in hackathon and bug bounty programs, you can get a share from the prize pool according to the importance of the bugs you find or the software support you will provide.
🟢Bounty: It is a bounty program initiated by projects to find bugs or code vulnerabilities in their own projects. Developers receive a share of the prize pool according to the size of the error they find.
🟢Hackathon: Projects can start such award-winning events in some periods to create different dapp, UX / UI or different tools in order to develop their own projects. A share is taken from the prize pool according to the subject of the event and the rating level of the work result.
🟢Grant (Grant Fund): Developers or projects can get grant support from investors and gitcoin sponsor fund pool by promoting their own projects.
🟢Kudos: You can participate in tests to measure your knowledge level and earn kudos (poap) according to your success level. You can also make Kudos your profile picture or send it to your loved ones.
🟢Gitcoin DAO: You can join the community, make suggestions and vote in the polls in proportion to the number of gitcoin tokens you hold in your wallet.
There are 2 types of fundraising methods for projects.
1)Normal Fundraising: Projects can raise funds from the investor by promoting their projects on the gitcoin site. There is no set time for fundraising.
2) Grant (Grant Fund) Program: Gitcoin initiates a grant program in certain periods (3 or 4 months) with the funding of sponsor companies or projects. Grant periods are important for projects. Because sponsor fund pools have serious monetary values and at the same time, they have a good showcase feature. Projects participating in the grant program receive a share from the sponsor fund pool with the Quadratic fund calculation method. Projects receive 2 types of fund support during the grant periods.
💎Projects receive all of the grant funding support given to them.
💎Projects receive a share from the sponsor fund pool with
Quadratic calculation.
Quadratic Fund Calculation:#
Gitcoin; It is a calculation method created to ensure that the projects participating in the Grant (grant fund) program receive a fairer share from the sponsor fund pool. In this calculation method, it is important how many investors the projects collect funds from, rather than how much funds they collect from investors.
Representative example:
Project A received a grant of $1000 from 10 people
Project B received $800 grant from 50 people
Project B receives a larger share of the sponsor grant pool because it raises funds from more investors in terms of number of people.
As a supporter's fund donate to a project increases, the share of the relevant project from the sponsor pool does not increase at the same rate. On the contrary, it decreases.
Representative example:
Project A raised $1 in funding. Quadratic takes $34 in calculation.
Project A raised $100 in funds. Quadratic takes $204 in the calculation.
As the grant amount made by the donater to the same project increases, the share of the project from the grant pool decreases. Had it increased at the same rate, $3,400 would have to be taken from the grant pool.
Summary: The project receives funding from the sponsor pool, up to the entire amount of grant funding and the rate calculated by the Quadratic method.
Why Donate?#
On the Gitcoin platform, many different projects such as DEFI-P2P-P2E-TOOL-DAO-WEB3-NFT-POAP-WALLET-LIBRARY-LAYER2-METAVERSE etc. are collecting grants. Their aim is to develop their projects and provide better quality service. We can contribute to the project development by providing grant support for the development of the projects we like. There should be no expectation for the grants (Airdrop) and should be made gratuitously. The aim is to contribute to the growth of the ecosystem and to make it better quality should be. But recently, RSS3 and OPTIMISM etc. It has been seen that the projects airdrop to the investors who give grant support to them during the grant period.
Optimism did not forget its users who provided funding support during the Grant period.
What Should Be Considered!
Project information, relevant persons and communication channels of all projects on the Gitcoin platform are specified. During your analysis, you can ask any questions the project owners through messages. Evaluate the potential of the project to become a trend or create a new trend, create a list by categorizing the projects and sort the projects in each category according to their importance.After completing all these processes, you can plan the budget distribution.
🟢WEB3
🟢DAO
🟢LAYER 2
🟢DEFI
You can always give funding support to projects. However, the fund support made during the Grant periods is much more valuable. Because, thanks to the funding support made during the grant period, the projects get serious funding from the sponsor fund pool. Therefore, it is useful to prefer to make grants during the grant periods.
In addition, there is no operational difference in making a normal grant or making a grant during the grant period.
Gitcoin Grant Beta Round, unlike previous grants, requires Gitcoin Passport score verification. In order for the projects to receive a share from the Grant pool,the donator must have a minimum Gitcoinpassport score of 15 !!!
What is Gitcoin Passport?#
It is a platform that allows donors to verify their identity by meeting various criteria that they are not sybil (real persons)
2 types of validation are used.
✅Off Chain : Google-Twitter-Facebook-Discord-Linkedin-Coinbase
✅On Chain : POAP-ENS-Zksync-NFT Holder-BrightID-ETH-Snapshot
Log in to the site and connect your evm compatible wallet while on the ETH Mainnet.
https://passport.gitcoin.co/
✅21 stamp criteria will appear. Click each stamp in turn.
✅Different criteria will appear for each stamp and activate the tab next to it for the appropriate ones and give the wallet approval.
✅When you meet any criteria, a green tick will appear under the stamp.(Verified)
When the appropriate criteria are met, your Gitcoin Passport score will appear in the upper right (evaluation is made out of 100 points)
‼️ Important Information ‼️
In the near future, I think many projects will require authentication platforms such as Gitcoin Passport, BrightID and Proof Of Humanity as criteria when giving out bounties or airdrops. That's why it's important to do verifications.
What is BrightID and how to sign up 👇
https://medium.com/@torlak78/brightid-nedir-ve-nas%C4%B1l-%C3%BCye-olunur-849d647cbf11
How to Make a Grant in Gitcoin Grant Beta Round?#
In the Gitcoin Grant Beta round, grants are gathered under 2 main titles and there are many sub-titled grant pools under these 2 main titles.
✅GITCOIN ROUNDS (selected projects by the Gitcoin community)
✅FEATURED ROUNDS (selected projects by Gitcoin and its Partners)
Some projects in the Grant can accept grants in more than one field. The reason for this is that the Grant award amounts in each main title and sub-titles are different and the relevant project provides services to more than one sector.
Login to the site👇
https://grants.gitcoin.co/
✅Click on the pool you want to donate.
✅Add the projects you will donate from the list to the basket.
✅Click on the basket at the top right for payment.
✅Click View my cart.
✅ Assign the same grant amounts to all the projects in the list by specifying the coin and amount you want to pay and selecting the apply to all tab. If you want to make changes, you can manually change the boxes.
✅Connect your Evm compatible wallet and click on the Submit your donation tab on the right.
✅Confirm-Continue-Wallet confirmation.
✅Share on Twitter.
You can also give grant support to Gitcoin and projects by minting the nft in the standwithcrypto event initiated by Coinbase.
https://zora.co/collect/0x9d90669665607f08005cae4a7098143f554c59ef
‼️ Considerations when making a grant ‼️
⚡️Beta Round, grant payments are made on the mainnet with Eth and Dai.
⚡️As each grant pool is evaluated differently, payments are made separately.
⚡️For projects to receive a share from the Grant pool, your Gitcoin Passport score must be at least 15.
⚡️Minimum grant amount is $1
⚡️Choose the projects you will donate well.
⚡️When making a donate, prefer to trade when gas prices are low.
⚡️ Be sure to follow the projects you support on Twitter. Sometimes projects offer advantages such as early access, testnet participation or airdrop to investors who support them, and they usually share this information on Twitter. By using the Twitter listing feature, you can also follow the tweets of the projects you support 👇
https://medium.com/@torlak78/twitter-da-listeleme-%C3%B6zelli%C4%9Fi-dac556e38625
I hope it was useful content. Thank you for reading❤️
Note: What I write is for informational purposes only. It is not investment advice at all. Please do your own research.(DYOR)
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