ConsenSys Gives Ethereum A Boost: $175k Given to 7 Open-Source Initiatives

ConsenSys Gives Ethereum A Boost: $175k Given to 7 Open-Source Initiatives

ETH News

Ethereum

ConsenSys, a Brooklyn, New York-based Ethereum development studio studio, is awarding $175,000 to seven different open-source projects being developed on the Ethereum (ETH) blockchain.

Revealed on October 10, the software development projects include Lighthouse, an innovative Ethereum software client, Tellor, an oracle network for handling off-chain data, Alice, a mobile-based platform for developing decentralized applications (dApps).

Commenting on the new wave of grant recipients, ConsenSys Head of Experiential Marketing Yadira Blocker remarked:

“In Wave 1, we saw a lot of applications but they weren’t super strong. In Wave 2, we started to see more credible teams and more unique ideas come to the table.”

Established in February 2019, the ConsenSys grants program has received more than 150 applications, Blocker revealed. Out of the 150, only 15 software development projects have received funding, totaling $330,000 so far.

The third wave of ConsenSys grants, announced last month, is currently accepting applications with $220,000 in funds left to distribute.

ConsenSys marketing director Daniela Osorio noted that the grants program aims to support under-resourced areas of Ethereum development that are critical to the ongoing growth of the Ethereum ecosystem, but not always profitable.

Osorio stated:

“The way we find really great projects is we talk to VCs and we ask, ‘What are some great teams you’ve come across that you can’t actually justify funding?’ It comes down to this theory of the ‘tragedy of the commons.’ We all need certain pieces to work for everyone else to build something potentially more profitable on top.”

ConsenSys-funded Ethereum bounties platform Gitcoin is exploring a new type of grant distribution, Capital-constrained Liberal Radicalism (CLR) matching.

Gitcoin founder Kevin Owocki said that the CLR matching is the “mathematically optimal way to fund projects people care about.”

The main idea is that the more contributions a project receives, the more financial resources that project will have from a dedicated grants fund. Gitcoin reportedly uses a proprietary algorithm to hand out grant money to match people’s donations in an impactful manner.

The more contributions that are made to an initiative, the greater the value of grant money that is allocated to a particular project.

On October 2, Gitcoin finalized its third wave of CLR grant funding, which involved the distribution of $100,000 in funding to 80 open-source projects.

Osorio stated:

“I don’t know if there’s ever enough money for people’s academic and research pursuits but I think there’s definitely a lot more community-driven efforts to address the notion and need for public goods funding.”