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Gitcoin 2.0

Exploring the frontiers of onchain capital allocation

Published Feb 2024
by Kevin Owocki


As of February 2024, Gitcoin has run 19 rounds of its Quadratic Funding grants program, and has distributed over $59M to early-stage builders and other grantees. 

Since its launch in early 2023, the Gitcoin Grants program has been powered by Allo Protocol, Gitcoin’s Capital Allocation Protocol. In this paper, we go in depth into Allo, which marks a strategic cornerstone of Gitcoin's approach to facilitating more dynamic, pluralistic, and inclusive funding models. Allo's architecture is designed for extensibility, supporting a diverse array of allocation strategies such as Direct Grants, Retroactive Public Goods Funding, Quadratic Funding, and many future mechanisms. 

By leveraging Gitcoin’s momentum and by building & proliferating capital allocation strategies, we aim to surmount the limitations faced by traditional capital allocation practices - often hindered by a lack of transparency, democratic participation, and accessibility.

As tokenization eats the world, our ambition is to enhance our collective capability to finance critical endeavors and create collective action across various fields. We envision Allo Protocol as an engine of exploration of this space. By stewarding a core repository of the best allocation strategies, rigorously audited and well-documented smart contracts, best practices, a social movement that leverages these tools, and other supporting collateral - we position Allo as a pivotal player in the decentralized capital allocation space.

This paper investigates the opportunities enabled by Allo, and articulates a pluralistic ecology of capital allocation tools, methodologies, and culture. We envision a diversity of types of capital allocation which enable collective action for different combinations of peoples, cultures, and causes.

For web3 developers and participants, the advancement of Gitcoin and the rollout of Allo  represent new opportunities in the pursuit of more equitable and effective capital distribution mechanisms.  


As highlighted in the Gitcoin whitepaper, the process of capital allocation plays a fundamental role in how human groups, from small teams to large communities, fund what matters to them.  Capital Allocation enables Collective Action.

As tokenization eats the world, the Total Addressable Market for web3 capital allocation tools is likely to grow by several orders of magnitude.

We believe that traditional capital allocation methodologies are ill-suited for the 21st century. Specifically, they suffer from:

  1. Gatekeepers - small groups of decision makers, who may become power brokers, and are unwilling or unable to be democratic.
  2. Not scalable - not taking advantage of the primitives the internet (easy access, direct to consumer interfaces) and Ethereum (credible neutrality, composability, transparency, democratic decision making, censorship resistance) have to offer.
  3. Not precise - without the ability to manage large amounts of information at scale, they are not able to precisely allocate capital resources.

By contrast, Ethereum-based capital allocation can be:

  1. Democratic - reflecting the will of the people.
  2. Accessible through web or mobile applications.
  3. Transparent - incorruptible, with audit trails available to anyone.
  4. Powerful - able to precisely allocate resources at scale.
  5. Extendable by anyone with experience working with Open Source Software.

We now have programmable money, so we can program our values into our money. We can build capital allocation systems that solve the problems of preciseness, scale, and remove gatekeepers. We can build democratic, accessible, transparent, and powerful capital allocation systems.

Gitcoin 2.0 is well positioned to lead this charge. Throughout the distribution of $59M to builders through the Gitcoin Grants program, we’ve witnessed the immense impact of capital allocation in action. Organizations that are able to make effective funding decisions to invest in their ecosystem see higher builder activity, user onboarding, and transaction volumes – in short: grants create growth.

Driven by these learnings, we’ve recently launched Gitcoin 2.0. Gitcoin’s transformation from 1.0 to 2.0 breaks down as the following:

  • Transformation from a centralized, Gitcoin-operated platform to a suite of modularized products and protocols that anyone can use and build on top of.
  • Transformation from only Quadratic Funding to many types of capital allocation mechanism (Quadratic Funding, Direct Grants, Retroactive Public Goods Funding, and more.)
  • Transformation from Ethereum-only to being deployed across many EVM-based networks (Optimism, Arbitrum, Base, Polygon, zkSync, Scroll, Avalanche, and more).

(For a full exploration of the opportunity space and Gitcoin 2.0, please read the whitepaper). 

Design Philosophy

Throughout the design and development of Gitcoin’s tech stack, we've adhered to a design philosophy grounded in key principles. These tenets are crucial for capturing our understanding of the broad spectrum of capital allocation design, yet they maintain the flexibility needed as we, along with others venturing into this domain, continue to learn and innovate.

0. Security First

Allo Protocol brings capital allocation onchain. We believe that this is a foundationally important step forward for the capital allocation ecosystem because it means we can now introduce credible neutrality, censorship resistance, and democratic decision making into capital allocation schemes.

But being onchain comes with new security challenges which must be responsibly managed.  As such, Allo has been audited and is designed to treat user security & safety of funds as a first and foremost concern.

1. Create open design space, when possible

In designing Allo, our aim has been to maximize the potential for experimentation. Practically, this means minimizing assumptions at the protocol-level as much as possible. This philosophy is evident in two key aspects of the protocol: the allocation strategies and the registry.

The goal of an allocation strategy is to allow the users to define onchain who qualifies for funding from a pool, how funding is determined, and the mechanism for distributing the funds. Allo, by default, enforces that any group distributing a pool of capital through the protocol has an answer to these questions. The protocol refrains from presupposing the nature of these responses, thereby granting communities considerable leeway in designing their allocation strategies.

The project registry aims to address several challenges, such as evaluating impact, curation, and project reputation. However, it doesn't prescribe specific solutions for these issues. Rather, it provides a platform for experimentation, allowing groups to explore various approaches and letting the most effective solutions surface through market dynamics. 

Consider project reputation as an instance; it might be managed using methods like attestations, soul-bound tokens, or other tools. Given that each project in the registry is associated with an address (referred to as an Anchor), these methods are all viable for a strategy to determine eligibility.

2. Simple core, rich periphery

This tenant of the Allo design philosophy is how we express the Unix philosophy in the protocol. The core of the protocol (Allo.sol) creates and funds pools and assigns them an allocation strategy (“Make each program do one thing well”). 

We expect (and hope) that the output of an allocation strategy will be used for a variety of things, including potentially funding other pools in Allo (“Expect the output of every program to become the input to another, as yet unknown, program”). 

3. Layered Approach

Gitcoin’s stack is separated into multiple layers:

Protocol Layer

Credible neutral capital allocation tools

Anchored by Quadratic Funding and Direct Grants, but extended by other mechanisms built progressively by the Gitcoin network over time.

Application Layer

Web & mobile interfaces

Anchored by Grants Stack, but extended by other applications built progressively by the Gitcoin network over time.

Program Layer

Opinionated services offered by engaged community members

Anchored by the Gitcoin Grants program, but extended by other programs built progressively by the Gitcoin network over time.

(For a deep dive on the layers and the architecture, please read the whitepaper). 

Allo’s Simple Core

We have designed Allo to have a simple, stable, and secure, core of four modules.  

These modules follow the Unix Philosophy of doing one thing and doing it well, but being interoperable with each other. This has allowed us to effectively, precisely, and scalable allocate capital.

The basic modules of Allo’s simple core are:

  1. Tokens being ingested into Allo.
  2. Registry - list of projects that could be funded.
  3. Strategy - how to distribute capital to the projects in the registry.
  4. Allo - the central nexus which coheres the above three elements together.

Each of these modules is overridable. From this simple core, a rich periphery is enabled. We hope Allo eventually supports (and provides off-the-shelf to builders) many possible permutations of capital allocation registries, tokens, and strategies.

For a detailed view of how these components fit together please checkout the Allo docs.


Allo serves as a protocol for capital allocation tailored for tokenized communities, featuring a novel concept of a registry of projects. The registry stands as a core foundation of data intelligence regarding the activities of projects, individuals involved, their reputation, and attestations about their impact.

For details about the core component of the registry, please refer to Appendix A: Registries - Simple Core.


Capital allocation strategies decide where tokens should go - often with the help of outside data, especially voting data.

Here are three of the strategies that are already built on Allo today:

1. Direct Grants/RFPs on Allo

A Direct Grants program perhaps represents the simplest form of grant-making. Users can easily establish a grant program on Allo, specifying its name, objectives, timeline, funding amount, and then open it up for applications. Unlike makeshift grant programs using traditional web2 tools, being onchain ensures the program’s incorruptibility, transparency, and compatibility with other grants initiatives. 

Users can launch a Request for Proposal (RFP) through the Direct Grants program. An RFP invites potential grantees to submit proposals, detailing project requirements, selection criteria, and submission deadlines. This process helps focus community efforts on specific challenges while promoting a fair, open, and competitive environment for securing services or products. 

2. Quadratic Funding on Allo

Quadratic Funding is a crowdfunding mechanism that optimally matches public goods funding based on the number of contributors rather than the amount contributed. It amplifies the impact of small contributions, ensuring that projects favored by a larger community get more funding. This approach encourages wide participation and democratically aligns funding with the broad preferences of a community. 

3. Retroactive Public Goods Funding on Allo

Retroactive Public Goods funding rewards projects for their proven value and impact on the public good, after their success is established. This approach contrasts with traditional upfront funding models, focusing instead on financially rewarding successful contributions after they benefit the community or society. It encourages innovation and risk-taking by providing a financial incentive for successful projects that have already demonstrated their public benefit.

The most popular Retroactive Public Goods Funding program in the world is Optimism’s RetroPGF Program - which we have forked and made available under a product offering called We will cover more on how Allo is compatible with Optimism-style RetroPGF below.

To see smart contract examples, please refer to Appendix B: Smart Contract Examples.

Allo’s Rich Periphery

We have made the core of the protocol simple so that the tooling built around it can be rich.


As of 2024, there are several prominent Grants registries created by different web3 platforms. 

Popular ones include:

  1. Gitcoin’s Allo Protocol
  2. Optimism
  3. Giveth
  4. CLRFund
  5. Hypercerts

The default Allo registry can be overridden to be compatible with any of these registries. Allowing other grants registries to interoperate with Gitcoin’s ecosystem.

To learn about how we’ve made the Allo registry compatible with other registries, please refer to Appendix A: Registries - Rich Periphery.

Capital Allocation Strategies

Using Allo Protocol, it’s possible to build any type of capital allocation strategy that can be built upon a Turing-complete smart contract platform, provided that the data inputs for the strategy could be put onchain.

Over time, as the design space is explored more fully, more advanced strategies could be built into the Allo ecosystem, allowing communities to do capital allocation that more tightly fits their ecosystem's needs.

We believe that providing the deepest and broadest repository of capital allocation strategies will make the Allo contracts a powerful set of tools for building capital allocation anywhere in the world.

To see an expanded list of the different types of capital allocation mechanisms we could be built atop Allo, refer to - Appendix B - Rich Periphery - Other New Types of Strategies.


In the physical world, an aqueduct is a structure built to convey water from one location to another. In the Gitcoin ecosystem, an aqueduct is a structure built to convey tokens from one location to another.

No capital allocation pool can be effective without funds going into it.

At their most basic level, an Aqueduct is an agreement to fund an Allo pool. At their most sophisticated level, they can be automated trustless flows of onchain funding. These aqueducts would provide a tool that incentivizes ecosystem development for your project with a single line of Solidity, allowing ecosystems to escrow funds into Allo and trustlessly expect that the funds will be allocated over time to their ecosystem growth flywheel..

As your project grows and more assets flow into its Aqueduct, GitcoinDAO will begin to provide more and more value to your ecosystem.

To learn more about aqueducts, read Gitcoin Aqueduct.

Design Space Exploration

Defining the Design Space

Allo Protocol has been designed with a generalized architecture that can ingest any grants registry, ERC20 token, or capital allocation strategy.

It is our belief that all permutations of this possibility space = (sum of all possible aqueducts) x (sum of all possible onchain assets) x (sum of all possible registries) x (sum of all strategies). 

The design space here is vast. We anticipate that there will be many valuable configurations of Allo Protocol in the future. 

This design space includes:

All possible aqueducts

All possible tokens

All possible project registries

Capital Allocation Strategies 

  1. that Allo already supports (Direct Grants, RFPs, Quadratic Funding, Quadratic Voting, Retroactive Public Goods Funding)
  2. that Allo could support (Assurance Contracts, Conviction Voting, Self-Curating Registries, Gift Circles, Angel Investments, Direct to Contract, and other mechanisms that have not yet been discovered)

To learn more about all the mechanisms we could build on top of Allo, please refer to Appendix B: Rich Periphery - Capital Allocation Strategy Ideas.

Traversing the Design Space

Exploring the design space through brute force– testing every possible model permutation– is inefficient. Instead, we refine our strategies by running Allo funding rounds and learning from the outcomes, employing an iterative OODA loop (Observe, Orient, Decide, Act) process that has previously matured Gitcoin Grants Stack and the Gitcoin Grants program. 

You can read more about how we’ve explored this design space so far.

However, fully exploring the design space alone is unfeasible. 

Therefore, Allo empowers others to explore and share their findings, and collaborate with Allo to share their discoveries with a broader audience.

Notable initiatives like and the Superfluid’s streaming Quadratic Funding pilot exemplify how Allo facilitates diverse funding mechanisms. These contributions, alongside others, are vital to Allo’s evolution into a key resource for developers in capital allocation. 

From the perspective of the Gitcoin network, these developers act as 1) decentralized explorers of the capital allocation design space and 2) have opportunities to align their incentives with Gitcoin’s along the way. This could be through participating in our Citizens Grants program, which utilizes Allo, or by fostering economic interoperability with Gitcoin through other channels. 


A lot of the design space exploration has been centered around grants, this choice being driven by the belief that grants are instrumental in fostering ecosystem growth. Grants = Growth.

Moving beyond grants, our vision expands into “Grants+”, aiming to pioneer beyond traditional funding models into a realm where the transformative potential of the “internet of value” redefines financial interactions and capital flow, akin to the internet’s overhaul of information exchange. 

Inspired by the internet’s evolution, “Grants+” is not just about enhancing existing models but reimagining capital distribution for ecosystem growth, mirroring the web’s leap from web1 to web3. This ambition involves delving into the non-skeuomorphic frontier of capital allocation, evaluating the immense opportunity space and the transformative power it holds. 

Just as we now exchange information in much higher volume and more powerfully than we did before the internet, we believe that Grants+ will offer much higher volume and more powerful ways for ecosystems to do capital allocation or collective action.

For more on the Grants+ roadmap, checkout this gov post.

5 Signs of Success To Look For

In 10-20 years, what does it look like if this vision is massively successful?

1. Tokenization eats the world

A bet on Gitcoin is a bet on the EVM ecosystem. A bet on the EVM ecosystems is a bet on tokenization of all assets. Allo is riding this wave, and is poised for much more upside as many more assets become tokenized.

2. Simple Core stays simple & secure, Rich Periphery becomes even richer

The simple core of Allo is working. Don’t mess with what’s working. Keep a focus on security and prevention of loss of user funds. If we are maximally successful, the simple core will continue to work as it does today.

We imagine a diverse ecosystem of

  1. many capital allocation tools built upon Allo protocol. In the fullness of time, this rich periphery could come to encompass all of the valuable configurations of capital allocation tools available in the 21st century.
  2. many 3rd party integrations of Allo into other ecosystems. By allowing anyone to build Allo into their brand or application, we dramatically increase the TAM of Allo.
  3. many adjacent tools. While they are not capital allocation tools themselves, they add value to the capital allocation tools in the Gitcoin ecosystem by providing adjacent functionality.

For a more detailed view of the rich periphery built around Allo, check out Appendices A-C.

As the rich periphery continues to proliferate, we expect to see:

  1. Allo Strategy Network Effects
    What OpenZeppelin has done for ERC20/721 contracts, Allo could do for capital allocation. Success in establishing Allo as a hub for these contracts could generate a positive feedback loop: better contracts attract more developers, leading to even better contracts, and so on. This cycle not only enhances the ecosystem's value but also expands the tools and services within the Allo ecosystem, bolstering its network effects and competitive advantage.
  2. Allo Registry Network Effects
    As more projects use the Allo ecosystem to fund themselves, Allo could become the most deeply liquid registry of projects in the ecosystem. It will have a rich ecosystem of tools that will support the practicalities of capital allocation. This growth will fuel a cycle of attracting more projects and funders, perpetuating itself.
  3. Allo Social Layer Network Effects
    The ecosystem will also benefit from a network of Grant program operators proficient in using Gitcoin's tools, further enhancing Gitcoin's success through a supportive network of service providers.

This expansion strengthens Allo's network effects and overall utility, establishing it as the resource for accessing project registries and capital allocation strategies, thereby ensuring its continuous growth and dominance.

3. Finding (3,3) with other innovators

Gitcoin is known for Quadratic Funding - a mechanism it helped to pioneer. But it cannot invent every capital allocation strategy.  

We need to enable Gitcoin’s broader network to (1) explore the design space and (2) integrate the best mechanisms back into Allo. This will enable us to integrate novel mechanisms pioneered elsewhere - from Retroactive Public Goods funding to Conviction Voting, and so on.

To do that, it must be strategically attractive for creators of new mechanisms to collaborate with Gitcoin, enhancing their reach through Allo. Integrating with Gitcoin offers broader distribution within the capital allocation ecosystem and amplifies Gitcoin's network effects. Gitcoin must excel in developing and refining interoperability—social, technological, and economic—with these partners.

For what DAO to DAO partnerships at Gitcoin look like, read 3 layers to DAO to DAO partnerships.

4. Stacking Allo on Allo

As more projects start to use Allo Protocol to fund their own ecosystem, we will start to see these multiple levels of flow go through Allo. 

What this funding could look like:

As more and more communities do this, 

  1. there could be a lot more bottom-up curation of project contributor lists.
  2. Funding will trickle down to lesser known projects, and so there will be more long tail public goods funding and cradle to unicorn public goods funding.
  3. we will see unprecedented diversification of funding sources for many important ecosystem contributors, helping us reach impact = profit in a more pluralistic way.

5. Gitcoin uses Allo to build Allo

Gitcoin is unique in that it is not only designing Allo, but it is using Allo to fund itself. Gitcoin builds Allo, and Allo builds Gitcoin. 

Through the Gitcoin Citizens Grants program, Gitcoin has an opportunity to use its own tools to build its own ecosystem. This is called Dogfooding - the practice of a company using its own products, which enhances product quality, ensures a better understanding of the user experience, accelerates feedback loops, and demonstrates confidence in the product's value. It fosters a culture focused on user needs, promotes innovation, saves costs, and strengthens brand loyalty by showing the company believes in and relies on what it sells.


We believe that Gitcoin 2.0 creates a new foundation for the next generation of capital allocation experimentation in tokenized communities. The modular and extensible design of Gitcoin's architecture invites ongoing innovation, allowing for the exploration of novel capital allocation strategies that can adapt to the evolving needs of the web3 community. 

The technology layer of the Gitcoin network enables the social layer and vice versa. By embracing the opportunities embedded in Gitcoin 2.0, the community can collectively work towards a more precise, equitable, and powerful distribution of resources. By rallying around Gitcoin’s vision of capital allocation, the Gitcoin network - the builders, partners, and projects, in Gitcoin’s orbit - will bootstrap a plurality of capital allocation strategies, registries, and adjacent tools. 

As more assets become tokenized and the landscape of digital communities continues to expand, Gitcoin's vision for a decentralized and open capital allocation ecosystem becomes increasingly relevant, urgent, and inevitable. It's a call to action for developers, partners, and visionaries to join forces and contribute to the development of a diverse and dynamic capital allocation ecosystem.

Developer skills and passion can significantly contribute to this mission. By engaging with Gitcoin 2.0, developers have the unique opportunity to be part of building a future where capital allocation goes beyond mere financial distribution. It becomes a sustainable competitive advantage, empowering communities, driving positive change, and funding what matters. Let’s seize the opportunity to innovate and create a more equitable future together.


Not financial or tax advice. This rainbow paper is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Additionally, Gitcoin contributors hold crypto assets. 

This document is not officially a Gitcoin strategy until it has been ratified by Gitcoin Governance.


Thank you to MathildaDV for editing this paper.

Appendix A: Registries

Simple Core

The core component of the registry is the profile. Profiles contain information about groups and individuals who wish to be part of the Allo ecosystem. Once a profile has been created, it can be used to run or participate in pools. All registry data, including profiles and event details, are stored onchain and can be accessed through a subgraph.

Each profile on the registry contains the following details:

To learn more about the Allo registries, check out 

Rich Periphery

We have gone to great lengths to make Allo’s registry compatible with other registries out there.  The following are the investments we have made in making Allo Registry.

  1. Abstracting the registry behind an interface IRegistry ( ) which can be implemented with any of the above registries.  By abstracting the above registries behind the IRegistry, other parts of the Allo ecosystem will not have to worry about the underlying data structure of a registry.
  2. Made it easy to publish grants from the Allo registry to the most popular registries out there by building a Common App for Grants.
  3. Made it easy to publish grants from the most popular registries out there to Allo’s official registry.

This concept of interchangeable registries is visualized below within the generalized Allo architecture.

For more on the interoperability roadmap for the Registry, please read this post.

Appendix B: Rich Periphery - Capital Allocation Strategy Ideas

Smart Contract Examples

Quadratic Voting on Allo (the fourth strategy on Allo)

See an example of an QV contract built on Allo

Direct Grants/RFP

See an example of an RFP contract built on Allo

Quadratic Funding

See an example of a QF contract built on Allo

Rich Periphery - Strategies we’d like to see built

The existing mechanisms built atop of Allo are incredibly powerful, but they are also only a very small portion of the design space. We envision a frontier of capital allocation mechanisms that could be built on top of Allo in the future.

Assurance Contracts

An assurance contract is a crowdfunding mechanism where pledges are only collected if a project reaches a set funding goal, reducing risk for backers by ensuring funds are committed only when the project is likely to proceed. It's ideal for public goods or community projects needing broad support.

A dominant assurance contract adds a twist by offering a refund bonus if the goal isn't met, incentivizing early contributions and tackling the free-rider problem to enhance participation attractiveness. This modification aims to boost the success rate of funding efforts by making it more appealing to contribute.

Allo Protocol allows for the creation of strategies incorporating assurance contracts, facilitating innovative funding models.

Conviction Voting

Conviction voting is a decision-making process used primarily in decentralized organizations, where participants stake governance tokens to allocate their support continuously to proposals they prefer. The longer support is maintained, the greater the "conviction" and vote weight, enabling fluid, dynamic decisions and mitigating abrupt, majority-rule outcomes.

Using Allo Protocol, one could create a strategy that allows holders of a token to stake their conviction on a project.

Self Curating Registry

A self-curating registry is a user-updated list of addresses, allowing entries and removals without central oversight. Popularized by Protocol Guild v2 for Ethereum developers, it facilitates consensus among contributors familiar with each other's work, identifying those making significant contributions. This mechanism enables treasuries to support builders of public goods by clearly recognizing key contributors.

Using Allo Protocol, one could create a strategy that allows members of the registry to receive tokenized rewards.

Gift Circles

A gift circle is where community members meet to mutually offer goods and services without expecting direct payback. Participants share their needs, and others contribute with their abilities or items, nurturing community bonds, generosity, and a support network beyond conventional economic systems. Highlighting sharing, caring, and trust, gift circles, popularized by Coordinape for web3 DAOs, enable equitable resource distribution among contributors.

Using Allo Protocol, one could create a gift circle strategy.

Delegated Domain Allocation

Delegated Domain Allocation, as proposed by Questbook, is a concept aimed at improving the efficiency of grant programs in decentralized ecosystems.

The idea is to decentralize these programs by empowering individuals with deep expertise in specific domains to manage grant allocations. These domain allocators would have control over disbursing budgets for grants in their respective areas. This approach aims to address issues in current grant programs, such as the limitations of committee members and burnout due to high application volumes, by distributing decision-making power and bringing funding closer to the builders and contributors of the ecosystem. 

Using Allo Protocol, one could create a DD allocation strategy.

Angel investments

Angel investment refers to the funding provided by individual investors, known as angel investors, to startups in exchange for governance rights. These investors often provide capital and sometimes mentorship and networking opportunities to help these young companies grow. 

Using Allo protocol, one could create a strategy that issues tokenized rewards for supporters of projects.

Prop House style capital deployment

Prop House is funding infrastructure incubated within the Nouns DAO ecosystem. Through funding rounds with defined scopes, communities can auction off fixed amounts of capital to proposers with the best ideas.

Using Allo Protocol, one could create a strategy that fundraises in a Prop House style campaign.

Direct to Contract

Direct-to-Contract Incentives, popularized by Rabbithole, is the concept that anyone can create an incentive for any onchain action.

At their core, incentives are simple:

1) Identify a desired outcome.

2) Select an action that leads to this outcome.

3) Provide a compelling reward to execute this action.

When built on scalable infrastructure, this degree of modularity creates a new design space and a playground for innovation in network-level incentives.  

Using Allo Protocol, one could create a strategy that fundraises in a Direct to Contract style campaign.

Other new types of strategies

Allowlist configurability

Giving round managers the ability to be able to fine tune who can decide where capital goes would give them the ability to sculpt very specific capital allocation requirements into their rounds. It would allow Gitcoin Grants Stack to be more configurable to capture not just QF, but RPGF, or other novel use cases.

Some options we hope to see: 

Read more: 

Privacy/MACI on Allo

MACI, which stands for Minimal Anti-Collusion Infrastructure, is an application that allows users to have an on-chain voting process with greatly increased collusion resistance. A common problem among today’s on-chain voting processes is how easy it is to bribe voters into voting for a particular option. Oftentimes this bribery takes the form of “join our pool (vote our way) and we will give you a cut of the rewards (the bribe)”. Since all transactions on the blockchain are public, without MACI, voters can easily prove to the briber which option they voted for and therefore receive the bribe rewards.

Impact Attestations 

An impact attestation is a formal statement or report that verifies and documents the effects and outcomes of a specific project, initiative, or investment, particularly in terms of social, environmental, or economic impact. It is often used by organizations, investors, and social enterprises to demonstrate accountability and the positive change they are making. This attestation can be critical for attracting investors, securing funding, or maintaining transparency with stakeholders.

There are a couple web3 primitives for doing impact attestations that we are excited about

  • Ethereum Attestation Service
  • Hypercerts

A web of trust is a decentralized trust model used primarily in cryptography, where trust in identities or information is established through mutual assurances from a network of users, rather than a central authority. Users validate each other's identities and assign trust levels, creating a network of interconnected trust relationships. This model is commonly used in PGP (Pretty Good Privacy) for secure communications, where trust in someone's public key is established through endorsements from others in the network.

Over time, it would be interesting to see more Impact Attestations built into the Gitcoin Stack.  Doing so would help ground funding decisions in more quantitative ways of measuring impact.

Read more:

Sybil Resistance

Sybil resistance is a property of computer networks that helps prevent individuals from creating multiple fake identities to gain a disproportionate influence on the network. It is particularly important in decentralized systems, like peer-to-peer networks or blockchain technologies, where trust and consensus need to be maintained without a central authority. 

Effective Sybil resistance mechanisms ensure that the power and decision-making within the network remain distributed fairly, despite attempts by some to manipulate outcomes by creating numerous identities.

Tools like Gitcoin Passport, Worldcoin, BrightId, and others could be integrated in new ways into Allo to make room for new, more democratic, capital allocation tools.

Other Novel Capital Allocation Strategies

There is a wide open design space of different ways to allocate capital that we believe will be built into Allo. As the space evolves, more data is put onchain, these strategies will become powerful & precise beyond our capacity to imagine what they look like today.

Allo is designed to be a schelling point for the discoverability of these mechanisms by hosting a library of well-audited, well-documented, forkable, capital allocation strategies that anyone can publish to or read from.

Bringing Allo to New Categories of Applications

We love the Art & other visual-centric applications

We love the art is an onchain art contest with 1,200,000 OP in prizes that ran in late 2023 / early 2024.  The 1,200,000 OP prize pool will be split evenly among four distinct categories. For a total of up to 188 contest winners, which is a total up to 47 contest winners per category.  The categories were AI art, generative art, music, and 1of1s. Each category was judged by 35 judges.

Using Allo protocol, one could create a strategy that issues tokenized rewards for supporters of these projects, and a frontend that is very visually stunning built on top.

Web2/fiat applications

Gitcoin has done non-crypto (fiat) quadratic funding campaigns twice in the past.

1. FundOSS - web2 OSS

FundOSS is a funding initiative launched by Gitcoin and Open Source Collective in 2021, utilizing a novel matching model called Democratic Funding to support open source projects. This model amplifies small donations through a matching algorithm, aiming to distribute funds more democratically. The first FundOSS pilot, which raised almost $95,000 for 55 projects, demonstrated the potential of this approach. It showed how even small contributions could be significantly amplified, making a substantial impact on supporting open source communities and initiatives.

2. Downtown Stimulus

Downtown Stimulus was a pilot program in Summer 2020 aimed at supporting local businesses in downtown Boulder Colorado through quadratic funding. This initiative utilized a unique crowdfunding model to encourage economic activity by directing funds to small businesses in need. The first experiment of Downtown Stimulus raised $41.5k from a $25k matching pool, 325 unique donors who donated 408 times, for an average of $40 each.  This program crowdfunding to bolster local economies and aid small businesses during challenging times. 

Fiat Funding: a New Market for Allo

We believe that the above two experiments show that there is demand for fiat crowdfunding experiments far beyond the crypto ecosystems.  There is an opportunity to skin all of the most successful Allo builds for a non-cryto-native audience.

Beyond EVM

One could build Allo into other ecosystems such as 

  1. Bitcoin,
  2. NEAR, 
  3. Solana, etc.

If you are building Allo into other smart contract ecosystems, please get in touch on twitter.

Appendix C: Rich Periphery -  Adjacent Tooling

As the network effects of Allo grow, we expect to see many more 3rd party integrations of Allo into other ecosystems. While they are not capital allocation tools themselves, they add value to the capital allocation tools in the Gitcoin ecosystem by providing adjacent functionality.

Current Builds

As of February 2024, here are some builds that we are really excited about:

  • Common App - a tool to transport your Allo project into other grant applications
  • - a tool for crowdfunding the matching pool for an Allo round.
  • - a tool for reporting out how an Allo round went
  • Quadratic Yeeter - a tool that makes launching a new Allo QF round only a couple clicks.
  • Hypercerts Grant Tool - an experiment in allowing Grant owners to attach their Impact Certificates (Hypercerts) on their grant profile, allowing for more proof of impact-centric applications
  • Funding.Social - a tool that makes it easy to see what your friends in the Lens ecosystem are funding on Gitcoin.
  • - an AI agent that supercharges public goods funding by using an LLM to find projects to contribute to.
  • AlloScan - Allo explorer allowing easy cross-chain transaction browsing, profile exploration, and pool discovery.

Future Tooling

Here are some categories of things we are interested in in the future

DevRel Tooling

There will be tooling that makes it easier to explore the Allo ecosystem from a developer perspective.

Some tooling we’d like to see:

  1. SDKS/ CLIs- that are up to date and enable more developer velocity .
  2. No-code tooling for assembling different permutations of Allo together.  Eg drag & drop a registry, a strategy, and a token, to compose a new allo app.
  3. Indexers - In order to make it easy to query projects and pools on the Allo protocol (including cross-chain), an indexer could be built to make it easy 
  4. Pub/Sub tools - tools that make it easy to publish to /subscribe from grant registries (especially other top grant registries in the space)
  5. Capital Allocation Strategy discovery tools - There is a lot of opportunity to build tools that help educate developers about the merits + drawbacks of different capital allocation tools.  This gets especially interesting when well-audited smart contracts or demos are attached to each allocation strategy.

Data Analysis & Exploration Tooling

We envision a category of applications that will make data analysis in the Allo ecosystem easier to do.  By making the onchain activity more comprehensible to end-users and to round operators, a new category of discovery, reporting, and analysis tools could be created. 

Token Staking Tooling

There will be areas of Allo protocol that will need to be governed by stakeholders in the DAOs that use Allo.  By allowing members of these DAOs to stake their tokens, Allo can provide token utility for these DAOs.  Some examples of applications we’d like to see:

  1. Stake governance tokens to rank your grant higher in the default sort order.
  2. Stake governance tokens to receive Quadratic Voting voice credits.
  3. Other areas where value can be generated only by those who hold specific tokens.

Dealflow Generation Apps

Gitcoin has a sustainable competitive advantage in finding the ecosystem’s next top projects.  This is because as an aggregator of signals about which projects are worthwhile, it sees early up and coming projects in each web3 ecosystem before anyone else does.

Did you know that Uniswap, Yearn Finance, and 1inch exchange, were all early fundraisers on Gitcoin? Now they are giant successes, with a FDV of $300m - $6b each. 

Hindsight 20/20, what if values-aligned investors had been able to find these projects before they became big successes? Gitcoin offers the ability for ecosystem funds to source these deals.

We invite the following categories of applications:

  1. apps that help generate dealflow + then sell that to investors.
  2. apps that allow projects to raise debt based financing based on expectation of future financing.

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