Money is apparently flowing again and it’s finding its way to Gitcoin, the online platform for funding ethereum projects with no strings attached.
“This will be our biggest round yet, with matching commitments that are at least $360k – our largest round yet!” – Gitcoin said.
Yearn Finance has for the first time overtaken the Ethereum Foundation to become the biggest contributor, granting $5,000 more at $155,000.
Overall some $360,000 is available for this round to last from 15th September to the 2nd of October with hundreds of projects out there.
“Give some back and fund the next wave of protocols,” Yearn’s Andre Cronje said, and Synthetix answered.
“A new hero appears,” Gitcoin said referring to Synthetix, adding: “This contribution (the highest we’ve ever received, even higher than the
Yearn Finance that was the previous ATH) was funded by SynthetixDAO.
They’d like to encourage any other teams to accept Andre Cronje’s challenge and give back to public goods!”
In a way all dapps on ethereum are public goods because they’re open source as the recent fork wars showed.
Also in a way Synthetix and Yearn are funding their own business in potentially direct ways, but also indirectly.
In direct ways many of these dapps rely on each other and in some ways quite fundamentally so. Therefore some of the projects that may be funded could directly benefit these dapps.
In indirect ways, talent must be in extremely short supply currently. Attracting new coders therefore, especially students who can pick up things quickly and can be molded more easily, is you’d think a vital part to the continuity of these dapps in the medium to long term.
Then there’s the unmeasurable effects. When money is flowing, everyone feels good, new people enter to catch opportunities, new dapps join to the benefit of existing dapps, and you get a snowball effect.
Many of these dapps started off themselves with grants, Uniswap being the chief example. Without that crypto bazar, a lot of other dapps wouldn’t be possible.
So perhaps quite uniquely it is generally in the interest of each dapp for other dapps to succeed and/or enter, obviously provided they’re not simple copy clones although even there there’s hardly much data to pass judgment.
Meaning there’s clearly a network effect with each participant benefiting to the square of new participants, but intuitively we think it might be cubed because these dapps are fundamentally reliant on each other and without some of these dapps, many other dapps are not even possible.
That’s not quite something that exists elsewhere to this extent, because usually code is walled.
Even open source code, which can be incorporated in a project and therefore has some similarity, does still operate within somewhat isolated networks with the best example being bitcoin and eth themselves.
They’re both open source code, eth copies a lot from bitcoin, but obviously not all. Yet bitcoin can’t talk to eth, unless you tokenize it which in substance creates a slightly different asset.
While on ethereum smart contracts can talk to each other and therefore the more useful smart contracts there are, then the more useful is each dapp, and of course the more useful ethereum and this entire space becomes.