Gitcoin — the blossoming bounty-based collaboration platform for open-source projects — recently surpassed $500K in total platform value, with completed projects and tips accounting for the majority of value.
Gitcoin has garnered increasingly more support following its launch on Ethereum in November of last year. According to the Gitcoin website, it currently has more than 18,000 daily active users and has helped 291 funders reach developers.
What is Gitcoin?
Gitcoin is very popular — especially in Ethereum circles — as a community mechanism for enabling ‘funders’ (i.e., projects and startups) to tap into a talented pool of designers and developers, known as ‘Gitcoiners.’ The platform is tailored for open-source projects on Github where projects building their coding infrastructure can outsource outstanding issues and more extensive assignments to Gitcoiners.
Funders can set bounties on Github issues and fund them in Ether through Metamask. Common types of issues that are supported include building new products or features, bug fixes, code reviews, and design. Open-source developers have the potential to create significant value but are often lacking financial incentive to. Gitcoiners — the contributing developers and designers — are incentivized to participate in the bounties and work directly with repo managers, receiving payment directly in Ether.
Gitcoin also provides a refreshing non-tokenized platform. Instead, it focuses on building a great product and fostering a growing community of contributors. Users do not have to worry about buying in and out of a native token, and can simply fund and receive payments through Metamask.
The Gitcoin month-by-month chart of platform value and community size aptly demonstrates just how consistent its growth has become, and its network effects should continue to push it further.
Building in a Bear Market
Innovating in a bear market is a challenging task as the extended downward financial pressure continues. However, the market provides an effective filter for valuable projects that begin to emerge from the rest. Gitcoin resides in the class of projects that has emphasized open-source communities and building products, regardless of the outside noise.
Periods of market depreciation are often essential growth cycles for the underlying technology. Outside of general price analysis hysteria, you can find some hidden gems of information on technical innovation (i.e., the Lightning Network’s proliferation), and growing communities.
Whatever your position is on the cryptocurrency space and the legitimacy of projects currently in the ecosystem, a silver lining that you can part with is that the projects that emerge from the other end of the bear market will be much more legitimate than many of those leading into the bull market.