Gitcoin has announced its current funding focus for the upcoming Grants Program. This step was taken by retiring the in-house software development and going all in on an ecosystem-led model.
Ahead of the GG24 Round, the team is also evolving beyond Quadratic Funding (QF) to Dedicated Domain Allocation (DDA). This current phase, according to Matilda, Grants Programs Lead at Gitcoin, helps the team identify Ethereum’s biggest challenges.
“Instead of running a series of QF rounds for everything, we identify Ethereum’s biggest challenges, engage domain experts to design appropriate funding approaches, and deploy mechanisms tailored to each problem area.”
What is DDA?
Dedicated Domain Allocation (DDA) moves funding to where it can have maximum impact. This process matches specific funding mechanisms to distinct problem areas.
This concept emerged from Ethereum Foundation research¹ in April 2022 and became popularised through the work of Questbook (most notably with Compound and Arbitrum).
Why does DDA matter?
According to the Gitcoin Grants Report, quadratic funding worked effectively with over 23 successful rounds as proof. However, Ethereum’s challenges require more than one funding mechanism. It requires a practical pluralism of mechanisms.
Gitcoin’s latest approach includes four key components:
- Sensemaking: An in-depth analysis of challenges and opportunities across the Ethereum ecosystem, validated through fundraising potential and community endorsement.
- Domain Definition: Clear boundaries and measurable outcomes for each focus area (ranging from 5 to 6), to ensure resources are concentrated where they can generate the most impact.
- Expert Engagement: Collaboration opportunities with proven domain practitioners who understand specific challenges and can design funding approaches.
- Tailored Capital Allocation: Deploying the right mechanism for each domain. This includes anything from QF to retroactive funding to direct grants to venture-style investments.
To make notable impact in the Ethereum ecosystem, Gitcoin Grants 2024 (GG24) is implementing a 5-phase approach, which includes:
- Sensemaking: Identifying high-impact problem areas through rigorous analysis and validating them through fundraising potential and visibility tests.
Sensemaking Szn for GG24 starts from June 9 and will run for 4-6 weeks, through a finalised framework posted to the forum that has clear criteria and expected outcomes.
- Establishing Domains: Creating specific focus areas through a transparent, community-driven process.
- Campaign Design: Developing targeted funding outcomes tailored to each domain.
- Campaign Execution: Implementing the designed campaigns effectively.
- Retrospective Analysis: Learning from outcomes to improve future rounds.
How to get involved
- Join the sensemaking season starting in June to help identify priority domains.
- Participate in domain selection voting as a GTC holder.
- Apply to serve as a round manager for domains that match your expertise.
- Provide feedback on Gitcoin’s latest roadmap here.
