- Kevin Owocki is the founding father of the Ethereum-based open supply funding platform Gitcoin.
- Gitcoin accepts donations on the Ethereum blockchain and makes use of quadratic funding to match donations and lift funds for public items in Web3.
- Owocki believes in a world wherein Web3 may increase earnings for everybody and convey about transformative change by supporting essentially the most impactful blockchain tasks.
Gitcoin founder Kevin Owocki talks quadratic funding in Web3, tokenizing optimistic influence with NFTs, and extra.
Kevin Owocki is simply concerning the reverse of the “crypto bro” stereotype. A Colorado native who prefers to spend his time within the mountains to any concrete jungle, he comes throughout as somebody who’d slot in higher at a distant hippy gathering than something to do with cash—even when it’s the digital form.
When Crypto Briefing met him on the primary day of Consensus 2022 in Texas’ hippy assembly spot turned tech hub capital, he turned up in a tee and shorts, contrasting the handfuls of audio system that sat on panels in costly fits and excessive heels. Once we escaped Austin’s 100 diploma warmth to discover a discrete cafe for our dialog, he eliminated his sandals to take a seat cross-legged on the couch, nearly as if he was practising a yoga place whereas we chatted.
Most individuals wouldn’t be capable to guess that Owocki works in blockchain, however because the founding father of one in every of Ethereum’s most important tasks, he’s each bit as crypto because the dollar-eyed tech lovers the area is usually related to. In truth, he’s nearer to the cypherpunks that impressed Bitcoin than any of crypto’s newer Silicon Valley entrants, although he describes himself as a “solarpunk” given his love of the outside.
His primary enterprise, Gitcoin, is without doubt one of the most profitable tasks within the blockchain ecosystem, liable for supporting Ethereum mainstays like Uniswap by its groundbreaking neighborhood grants program.
Gitcoin is finest described as a funding platform that helps the open Web, a world crypto natives like Owocki confer with as Web3. It leverages the Ethereum blockchain to lift funds to assist speed up the expansion of public items. To this point, it’s raised over $63 million from the crypto neighborhood.
Open Supply Maximalism
Owocki got here up with the thought for Gitcoin after spending a decade in software program engineering for so-called “Web2” expertise startups. After seeing how recruiters would extract worth when sourcing expertise, he discovered his approach into crypto—particularly Ethereum. The concept of making a brand new model of the Web that wouldn’t be managed by Fb or Google fitted completely with what Owocki wished to attain. “I began Gitcoin to disintermediate recruiters,” he mentioned. “Principally, we’re serving to builders discover alternatives in Web3 and get cash.”
Owocki believes that crypto networks present the proper option to help open supply tasks that change the world for the higher, a lot in order that he describes the rising expertise as a device for a societal revolution. “The magical factor about crypto is that we will program our values into our cash so if we worth open supply and public items then we will construct financial techniques that help these issues,” he mentioned.
“The magical factor about crypto is that we will program our values into our cash.”
Gitcoin is an Ethereum mission, however in contrast to lots of crypto’s foremost evangelists, Owocki insists that he’s blockchain agnostic. Moderately, he and Gitcoin need to help builders to assist the entire pie develop larger. As Ethereum has the most important mindshare within the area at the moment, it simply so occurs to be the most effective one for Gitcoin to run on. “I’m an open supply maximalist, I wanna see individuals engaged on highly effective impactful tasks, and Ethereum has the best community impact to make that occur proper now,” he defined.
Gitcoin launched on the peak of a retail-driven mania interval for the cryptocurrency market in late 2017. Whereas sketchy tasks had been utilizing Ethereum to lift funds by crypto crowdfunds often known as preliminary coin choices, Gitcoin set out on its mission to help the builders that had been starting to look within the ecosystem. It discovered success early on. The Ethereum Basis funded the mission’s first seven grants rounds, earlier than key decentralized finance tasks like Yearn.Finance got here on board to help its subsequent funding rounds.
The Energy of Quadratic Funding
Whereas Web-based crowdfunding is nothing new, Gitcoin works in another way to Web2 platforms like Kickstarter and GoFundMe—and never solely as a result of donors should ship Ethereum tokens. It pioneered quadratic funding, an idea coined by Ethereum’s Vitalik Buterin, Zoë Hitzig, and E. Glen Weyl. In conventional funding, tasks typically have massive supporters that improve the entire funds raised by matching the quantity donors have dedicated. Quadratic funding, in the meantime, makes use of an identical pool primarily based on the variety of donations reasonably than the scale of them. In different phrases, a mission that receives $100 price of grants from 100 donors will obtain a couple of that receives a single $100 grant from one donor. “Quadratic funding optimizes for the preferences of the various reasonably than the wealthy few,” Owocki mentioned.
“The following 1 billion individuals utilizing Web3 will use it for the Web of jobs.”
Eschewing the established order of the normal system in favor of “the various” sums up Owocki’s total outlook on crypto. Whereas Web3 is presently recognized for speculative hype cycles which have enriched the savviest DeFi and NFT customers, Owocki thinks that decentralized expertise may provide the world greater than ponzinomics and monkey photos. He says he’s enthusiastic about serving to common individuals earn a greater dwelling because the area heads towards mass adoption. “I feel the subsequent 1 billion individuals utilizing Web3 will use it for the Web of jobs,” he mentioned. “I purpose to create a world wherein DAOs are augmenting earnings so we now have a systemic incentive to work on the commons and our communities.”
Whereas Web3 nonetheless will get a nasty rep from Huge Tech entrepreneurs, Bitcoin followers, and blockchain skeptics alike, Owocki argues that it improves on the Web of at the moment as a result of it helps create a extra pluralistic world. “We’ve cash legos we will construct on, so there are much less of the sharp elbows present in Web2,” he mentioned. “It’s like being in a backyard collectively the place we share the soil and the air and composite elements.”
The latest Web3 growth was led by an explosion of curiosity in art-based NFT tasks like CryptoPunks and Bored Ape Yacht Membership, however with ETH presently round 75% down from its highs, a lot of the speculative hype that characterised 2021 in crypto has died. Nonetheless, Owocki says this doesn’t matter for Gitcoin. “Everybody within the area, whether or not it’s a growth or bust cycle, wants software program builders,” he mentioned. “Gitcoin occurs to be in a great spot as a result of it’s serving to these builders discover these ecosystems, so we’ve received a fairly wholesome enterprise.”
Supporting Influence DAOs With Gitcoin
Apart from Gitcoin, Owocki is most occupied with crypto tasks which have optimistic externalities and improve their sources over time. He namechecks the common primary earnings mission Proof of Humanity and the decentralized carbon-based token initiative KlimaDAO as examples of what he calls “influence DAOs”—teams often known as decentralized autonomous organizations which have demonstrated a dedication to making a optimistic influence on the world round them.
“Gitcoin funds all these sorts of tasks and we’ve been serving to them discover one another, change sources, and concepts,” he mentioned. “The potential of that is the place influence DAOs increase each earnings on the planet to assist everybody help their communities and make ends meet.”
Owocki thinks that influence DAOs may leverage NFT expertise to fulfil their missions, however not essentially by digital artwork JPEGs. As a substitute, he envisages a world wherein DAOs difficulty tokenized “influence certificates” to unfold their message. “What if we may tokenize that influence and say you take away 10 tons of carbon from the environment, otherwise you take 10 children out of poverty, otherwise you fund open supply tasks for a yr?” he contemplated. “We will create a certificates that you could add to your steadiness sheet.”
Owocki says that influence certificates may create a enterprise mannequin for DAOs by providing rich donors an opportunity to sign advantage and flex about spending on essential causes. “Crucial factor is that when persons are creating worth for the world, they’ll receives a commission for that worth,” he mentioned.
“Influence DAOs may increase each earnings on the planet.”
Crypto has lengthy rewarded customers for doing good. Early mission supporters typically obtain governance tokens for bootstrapping liquidity, and in recent times Ethereum tasks like Optimism have allotted token airdrops to Gitcoin donors. Owocki applauds the dozen or so tasks which have rewarded loyal Gitcoiners. “It creates a suggestions cycle the place it’s like ‘oh wait, doing good is nice karma and it comes again to me’,” he mentioned.
Whereas Gitcoin has loved success over its early years, Owocki is simply as excited for the mission’s subsequent part. The corporate is presently shifting towards a decentralized construction that can unwind its present hierarchy with the tip purpose of placing the mission’s growth and economics absolutely within the arms of its neighborhood DAO. He additionally says that he’d prefer to see the mission obtain recurring contributions reasonably than one-off donations. And he’s extra satisfied than ever that it may play a vital function in supporting the fast-growing decentralized ecosystem. “As soon as Web3 is large enough to take over the world, we’ll be capable to go into adjoining classes of doing grants and hackathons for everybody,” he mentioned. “However for now, it’s area of interest Web3 tasks.”
Disclosure: On the time of writing, the writer of this piece owned ETH, GTC, and a number of other different cryptocurrencies. Additionally they had publicity to UNI in a cryptocurrency index and have beforehand contributed to Gitcoin Grants.