As the Web3 ecosystem continues to mature and expand, it’s important to note the shifting dynamics that have taken shape, especially in Africa. While early discussions surrounding Web3 were often dominated by the buzz around cryptocurrencies and speculative trading, the conversation is now evolving. Across the continent, Web3 is increasingly being viewed not just as a financial tool, but as a transformative technology capable of addressing a wide range of social, economic, and developmental challenges.
This shift is not merely conceptual; it is tangible and happening right now. In Africa, the excitement around Web3 has been redirected toward something that could have profound, long-term benefits: Public Goods.
More specifically, Web3 Public Goods—open-source software, decentralized infrastructure, and digital platforms that serve society’s collective needs—are becoming central to the conversation. Web3 continues to build momentum, and there is a marked increase in engagement from individuals, businesses, and governmental organizations, all exploring how decentralized technologies can be harnessed for societal good.
Web3’s New Purpose in Africa
In the past, the African Web3 ecosystem was solely or largely centered on speculative activities like crypto trading. However, this narrow focus is rapidly expanding.
More and more people recognize that Blockchain and decentralized technologies offer far more than just financial opportunities. They provide solutions to Africa’s most pressing issues—financial inclusion, access to quality education, improved healthcare, and sustainable development.
This evolving vision of Web3 is exciting and revolutionary, especially to enthusiasts. In countries where traditional financial systems and infrastructures often fail to provide universal access, Web3 is positioned as a game-changer.
African nations are leveraging Blockchain to create wealth solve systemic issues and build more inclusive economies. For the first time, communities are thinking about Web3 as a tool for public good—a shift from personal financial gain to collective societal benefit.
Understanding Public Goods in the Web3 Era
To fully grasp the importance of Web3 public goods, it’s essential to understand the concept of “public goods” itself. In traditional economics, public goods are non-excludable and non-rivalrous. Non-excludable means that no one can be barred from accessing the good, whether or not they have contributed financially. Non-rivalrous implies that one person’s use of the good does not reduce its availability to others.
In the context of Web3, these principles are directly applied to digital public goods. These are digital services and assets—like open-source software, decentralized protocols, and digital education platforms—that are freely available for anyone to access and use. What sets them apart from traditional public goods, however, is their decentralized nature. Rather than being provided or controlled by a central authority (like a government or corporation), Web3 public goods are built and maintained by a global, decentralized community of developers, creators, and contributors.
In Africa, this decentralization has a special resonance. It offers an opportunity to bypass traditional systems that may be inefficient or exclusionary. Web3’s focus on digital public goods enables communities to build the resources they need collaboratively and transparently, without relying on centralized institutions that may not serve the collective good.
The Power of Decentralized Funding for Public Goods
One of the most powerful aspects of Web3 public goods is the way they are funded. Traditional funding mechanisms for public goods—like government grants or philanthropy—often come with limitations, whether in terms of access, fairness, or transparency. But Web3 funding models introduce a radical shift. Public goods are funded through decentralized autonomous organizations (DAOs), crowdfunding platforms, and other blockchain-based tools, more inclusively and transparently.
Decentralized funding is one of the most exciting aspects of the growing Web3 movement in Africa. With the rise of decentralized finance (DeFi) and tokenized economies, people from all walks of life—whether they are investors, developers, or ordinary citizens—are finding new ways to contribute to and benefit from public goods.
Funding for Web3 public goods can take several forms:
- Funding Clubs: Groups of individuals pool resources and distribute grants based on a shared vision or theory of change. This model empowers communities to decide what projects to fund based on their unique needs and priorities.
- Platform Grants: Open platforms like Gitcoin and Octant allow individuals to submit funding proposals, which are then reviewed by the community.
- Ecosystem Grants: Larger, more formal organizations—such as foundations and ecosystem teams—review applications and fund projects that have a strategic impact on the broader Web3 ecosystem. These grants often focus on infrastructure and long-term sustainability.
- Bounties: This model involves funders posting specific tasks or challenges, with rewards given to contributors who complete the work. It’s a direct way to incentivize action and participation in the Web3 space.
- Retroactive Funding: Some DAOs (like Optimism’s retroactive public goods funding) fund projects retrospectively, recognizing and rewarding contributors for value already created. This model encourages a culture of collaboration and contribution, where the value of community work is acknowledged even after the fact.
The Role of Engagement
What is common across all of these funding models is the underlying principle of community engagement. Web3 is about working out loud, collaborating, and ensuring that everyone has a voice in the decision-making process. This means building systems and structures that promote transparency, open communication, and shared responsibility.
For many of the initiatives that rely on Web3 public goods, this shift in governance requires new capacities—skills in community building, transparency, and online decision-making.
Web3’s emphasis on community-driven, transparent governance is particularly relevant in Africa, where traditional systems of governance often struggle with issues like corruption, inefficiency, and exclusion. Web3 offers an opportunity to rethink how resources are allocated and managed, allowing local communities to take ownership of projects that directly affect their lives.
Moving Beyond Investment
Looking ahead, there is a growing need for local African Web3 communities to not only invest in public goods but also to take a more active role in research, advocacy, and education. Although communities like The Borderless Community are already paving the way by funding digital public goods, there is still much to be done. The next step is to dive deeper into foundational research around public goods provision—exploring how different models can be optimized to better serve African communities and global needs.
Furthermore, raising awareness and fostering collaboration between stakeholders is key to ensuring that Web3 public goods projects are sustainable and impactful. Whether through local Web3 conferences, hackathons, or partnerships with international organizations, the more knowledge and awareness are shared, the more likely these initiatives are to succeed in the long term.
The question now is: How will you contribute to this change? Whether you are a developer, an investor, a creator, or someone simply passionate about social good, there are countless opportunities to get involved. As we head into the new year, think of it as ‘one public good at a time’.
