Gitcoin Debt Raise

I think the issue around GTC price and emissions has been an issue noticed by many others.

In ETH terms, the price of GTC has been heading downwards as of late, and this is despite the success of GR10, GR11, and all the other stuff (incl. moonshot collective).

This has a lot of negative feedback loops in that the price decrease means more emissions for contributor payouts, etc.

What I propose is that Gitcoin explores the process of doing a debt raise. I’m already talking to protocols that are interested in this kind of deal, and if Gitcoin is involved, we could potentially get others to join as well.

The debt raise doesn’t need to be big and it doesn’t need to be a long duration either, around 50k denominated in stables.

This would enable Gitcoin to do many things:

  • allow users to fund public goods by redeeming their GTC and burning it, and using the stables to fund whatever they want to support
  • start paying contributors in stables (if they want)
  • allow other DAOs an opportunity to diversify their treasuries, earn yield, while still supporting public goods

I think all the points are interesting, but the first one is the most interesting, because it potentially unlocks utility for GTC by allowing people to directly use GTC to fund public goods while reducing potential sell pressure.