Key Takeaways:
- By May 2025, Gitcoin will formally close down its Grants Lab business unit and Grants Stack technology.
- Financial constraints and a necessity to give Gitcoin’s main Grants Program top priority have led to this choice.
- Gitcoin is still dedicated to improving the Grants Program going ahead and promoting public goods funding.
By May 2025, Gitcoin said it will retire its Grants Lab business unit and Grants Stack technology. This tough choice comes after months of internal examination; its main aim is to preserve Gitcoin’s long-term viability and focuses on its established core: Gitcoin Grants Program.
Gitcoin’s Decision to Wind Down Grants Lab
For Gitcoin, a top platform in decentralized public goods funding, the statement signals a turning point. Gitcoin had restated its goal in early 2024 to concentrate mostly on grants. The leaders were had to make difficult decisions, nonetheless, given the continuing market decline and an unworkable financial model. Though it was creative and helped the environment, Grants Lab had been running at a loss for a long time.
While running expenses total over $3 million annually, Gitcoin said it brings in roughly $1 million. Grants Lab was a significant part of this financial burn. In today’s challenging crypto environment, with persistent bearish conditions, scaling revenue to cover such expenses proved unfeasible. Funding a unit that was not self-sustaining would have compromised Gitcoin’s general financial viability.
Gitcoin is cooperating closely with partners to oversee active donations, transfer some initiatives to reliable allies, and guarantee that contributors are assisted all during the wind-down phase as part of the transition.
Grants Lab’s Achievements and Impact
Although Grants Lab will cease operations, its contributions to the Web3 ecosystem have been substantial. Over the last year, Grants Lab:
- Expanded Gitcoin’s grant technology beyond traditional quadratic funding.
- Successfully deployed nine new funding mechanisms to innovate decentralized grantmaking.
- Forged partnerships with leading ecosystems such as Optimism, Base, Polygon, and Filecoin.
- Helped communities design customized funding strategies tailored to their specific needs.
Grants Lab also played a crucial role in advancing Gitcoin Passport (now part of human.tech) and Allo Capital, two spin-offs that are thriving independently today. Despite the sunsetting of the business unit, these achievements underscore Gitcoin’s influence in shaping the future of public goods funding.
Key Contributions of Grants Lab
Grants Lab significantly strengthened Gitcoin’s reputation as a leader in the grants innovation space. Events like Schelling Point brought together major Web3 communities to collaborate on public goods funding models. In addition, the Lab’s efforts enabled Gitcoin to provide funding infrastructure that extended beyond the Ethereum ecosystem, reaching into broader Web3 networks.
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The team’s mission to “empower anyone in the EVM ecosystem to create, manage, and grow successful grants programs” left a lasting impact. Although the financial model was unsustainable, the network effects generated by Grants Lab will continue to benefit Gitcoin’s ecosystem and its partners.
Read more: BNB Chain Completes Upgrade and Launches Pascal Hard Fork: A New Era of EVM Compatibility and Speed
Immediate Steps and Transition Plans
Gitcoin has outlined specific measures to manage the transition responsibly:
- Collaborating with partners to ensure a smooth handoff of active grant rounds.
- Evaluating ongoing projects for potential migration to other organizations.
- Supporting affected contributors with career transition assistance.
- Continuing core grants operations without disruption for donors and grantees.
For the broader Gitcoin community, the message is clear: Gitcoin Grants are not shutting down. In fact, this move doubles down on the Grants Program’s importance. Upcoming initiatives like GG24 will continue, maintaining the community’s ability to support and fund impactful projects.
Focusing on Gitcoin’s Future
Gitcoin’s leadership, looking forward, is dedicated to restoring its fundamental functions. By improving donor and grantee experiences and testing with novel funding sources, the organization intends to give the Gitcoin Grants Program priority for innovation.
Though they have admitted the emotional challenge of this choice, Gitcoin leaders have underlined that the organization’s future depends on its long-term viability being guaranteed.