TL;DR
- Launching Out Allo.Capital: We propose Allo launching into a new business, Allo.Capital, focused on building tools for onchain capital allocation in a tokenized internet.
- Big Upside: There’s a generational opportunity here as the EVM continues to disrupt traditional finance and we tokenize assets en masse. In ten years, there could be tens of trillions of tokenized assets, and we aim to claim a significant share of how that capital is allocated. If this upside is realized, Allo.capital will be a huge +EV for Gitcoin.
- Temp check was positive: A month ago, we posted TEMP CHECK: Allo + Gitcoin - do they make more sense together or seperate? and got a warm response to separating Allo from Gitcoin.
- Vision and Goals: Allo.Capital is creating the category of on-chain capital allocation. Starting with developers, we aim to empower them to address inefficiencies in traditional systems through on-chain strategies and support broader Web3 ecosystems with innovative tools.
- Gitcoin Alignment: I will steward Allo.Capital while continuing a prominent role at Gitcoin as a steward, tokenholder, citizen, user. Gitcoin will be a key partner and customer. If Allo ever tokenizes, Gitcoin + its constituents are likely to be involved. Allo and Gitcoin are designed to complement each other (dev-first vs. enterprise-first).
Allo.Capital
I’m thrilled to share a new proposal about the future of Allo Protocol and my evolving role within the Gitcoin ecosystem.
As many of you know, Gitcoin has always been about pushing the limits of Funding What Matters. When we launched Gitcoin in 2017, our mission was to support open-source development with hackathons and bounties. Fast forward, and Gitcoin has grown into a platform that’s disbursed over $60M in funding, empowered ecosystems like Optimism and Arbitrum, and helped build a movement. Last year was the first year Gitcoin made significant revenue of over $1m. I couldn’t have imagined what Gitcoin would evolve into today. But why stop here?
Today, I’m thrilled to propose that we are launch Allo into a standalone business called Allo.Capital. This move reflects a bold vision: to make Allo the capital allocation layer of the tokenized internet.
The Vision Behind Allo.Capital
The leap we’re making today is about building something bigger.
Capital allocation—the act of spending money to achieve an outcome—is everywhere, from paying bills to funding innovation. But the traditional systems we rely on are inefficient, opaque, and painfully exclusionary.
Here’s the thing: Crypto and programmable smart contracts can fix this. They can make capital allocation efficient, transparent, and accessible. And that’s where Allo.Capital comes in. We’re forming a standalone business with one mission: to build the capital allocation layer of the tokenized internet.
Why now? Because we’re witnessing a once-in-a-generation shift. The EVM is eating traditional finance, and the world is tokenizing. In ten years, we’ll see trillions of dollars in tokenized assets. Allo aims to build the infrastructure that allocates those assets in ways that are transparent, decentralized, and impactful.
BTW, Allo.Capital is already innovating in the space. In just the past couple of weeks, we’ve shipped (or helped to ship):
- Deep Funding: A bold experiment with Vitalik and other industry leaders exploring new ways to fund dependencies.
- Cookie Jar: A simple tool for funding small groups of contributors.
- InfiniteRegen.AI: An AI Agent Capital Allocation experiment that could evolve into an ecosystem of AI-powered capital allocation tools.
- AlloKit - a new way for developers to build onchain capital allocation tools better, faster, and cheaper.
And this is just the start.
Why Allo.Capital?
To realize this ambitious vision, Allo needs a dedicated focus and investment. As someone who’s been nerding out on capital allocation systems for years and even written two books on the subject, I’ve got a pretty solid handle on the problems we’re tackling and the tech that’s going to make it happen. By spinning out Allo.Capital, we’ll create a specialized team to tackle the technical and strategic challenges of capital allocation. Creating a distinct, specialized entity will allow us to raise capital so we can make this vision a reality.
We’ve learned from past Gitcoin spinouts like Buildbox, Kernel, and Passport that independence breeds innovation. Allo.Capital will follow this path, raising its own capital and scaling its solutions across Web3. I’m super proud that Gitcoin has been a launchpad to help innovative projects take off, and I’m sure Allo.Capital is gonna carry that torch and keep the magic alive.
Allo.Capital and Gitcoin: A Binary Star System
Like binary stars orbiting a shared center of economic gravity, Allo.Capital and Gitcoin are intrinsically linked, each enhancing the other’s trajectory while maintaining their own identities. The work of Allo.Capital and Gitcoin will remain closely aligned:
- Gitcoin as a Partner: Gitcoin is Allo’s biggest customer and will continue to leverage Allo’s tools to power grants programs.
- Complementary Focus: Gitcoin will serve enterprise partners with grants solutions, while Allo.Capital focuses on developer tools for the technical layer of capital allocation.
- Shared Roadmap: Gitcoin’s Grants Lab will work closely with Allo to ensure we build tools that create real value for our customers.
If Allo ever tokenizes, I fully expect Gitcoin and its DAO constituents to be substantial tokenholders.
My Continued Role at Gitcoin
While my full time focus will shift to Allo.Capital, Gitcoin remains my home base.
As a steward, tokenholder, and active supporter, I’ll continue to help guide Gitcoin’s mission and fund its growth. Gitcoin’s strategy is strong, and its momentum speaks for itself. We have strong partnerships with major ecosystems like Optimism, Arbitrum, Sei, Filecoin and many more. Gitcoin is thriving, and I leave it in fantastic hands with leaders like Meg (Grants Lab) and Mathilda (Citizens) driving forward with clarity and precision.
But no matter where I go, I’ll always be Gitcoin’s biggest advocate.
What’s Next?
Today, we will propose this new structure and funding budget from Gitcoin, and plans to raise additional capital from outside investors. From there, Allo.Capital will chart its own course.
In Closing
Gitcoin’s mission has always been about empowering communities to fund their shared needs. Spinning out Allo.Capital is the next step in that journey—expanding beyond grants into the broader world of decentralized capital allocation.
The future is big, bold, and full of possibilities. I’m excited to build it with you.
If you want to learn more,
- Checkout https://allo.capital
- Keep an eye out for the budget being posted later today.
Kevin Owocki
Co-founder of Gitcoin, Gitcoin Steward, Citizen, User, GTC Holder
Founder of Allo.Capital
