It's time for Gitcoin to get profitable

:seedling: Funding What Matters: Profitability & the Infinite Game

Hey Gitcoiners,

Gitcoin exists to fund what matters—to allocate resources to the builders, public goods, and regenerative projects that push the space forward. But to fulfill this mission at scale and over time, Gitcoin itself must be financially sustainable.

Profitability isn’t just a financial goal—it’s an enabler of impact. If we want to keep funding what matters indefinitely, we need a model that ensures Gitcoin generates more value than it spends.

:fire: What is Profitability?

At its core, profitability means Gitcoin has a sustainable financial engine. Our revenue streams (from protocol usage, grants programs, partnerships, etc.) must exceed our operational costs. More importantly, profitability means we don’t just survive—we thrive.

A sustainable Gitcoin means:
:white_check_mark: More funds for builders, open-source maintainers, and impact projects.
:white_check_mark: Less reliance on outside grants or treasury drawdowns.
:white_check_mark: The ability to fund public goods not just today, but 10+ years from now.

:dart: Why Does Profitability Matter for Gitcoin?

  1. Mission Alignment: Our goal isn’t just to sustain Gitcoin—it’s to sustain the builders and communities we serve. Profitability lets us fund what matters indefinitely.
  2. Infinite Game Thinking: A financially sustainable Gitcoin isn’t just reactive—it’s proactive. We can build, iterate, and refine our mechanisms over the long haul.
  3. Regenerative Economics: A thriving Gitcoin means more value flows back into the ecosystem, instead of being extracted or depleted.

:building_construction: Profitability Across Gitcoin’s Core Products

Gitcoin’s economic engine is powered by three main components:

:one: Allo.Capital

Monetization Model: Protocol Fees, Revenue, Fund

Allo Protocol is the backbone of Gitcoin’s grants infrastructure. Profitability here means ensuring sustainable revenue streams from protocol usage, integrations, and ecosystem adoption.

Allo Kit - is an enabler of other builders to build apps that fund what matters. There may be service revenue or app level fees that come out of it.

Allo Fund - it is a possible business unit we launch that allows us to participate in upside of the apps launched in/around Gitcoin/Allo.

:two: Gitcoin Grants (GG) Program

Monetization Model: Fee Revenue
The GG Program funds public goods using Gitcoin’s infrastructure. To be financially sustainable, we need to design models where the people administering these rounds can charge a fee to keep themselves afloat financially and where ecosystem partners contribute, funding is diversified, and long-term stability is prioritized.

:three: Grants Lab

Monetization Model: Attestations, Services Revenue, Retroactive Funding
Grants Lab is the primary software development unit of Gitcoin, empowering its ecosystem with new funding models and mechanisms.

It has a diversified revenue stream that includes mint attestations, services revenue, and retroactive funding. More on their annual budget request.

:rocket: The Path Forward

Zooming out - Gitcoin’s mission funding what matters. But if we don’t ensure our own financial sustainability, we won’t be around to fulfill that mission long-term.

Our next chapter must be about building a regenerative, impact-driven, and financially sound Gitcoin. When we’re profitable, we fund more builders, allocate more resources, and expand the frontier of what’s possible.

Here’s the brass tax: Gitcoin can become profitable. It’s already doing more than $1m/year in revenue. But it’s costs are too high for that level of revenue (closer to $4.5m/yr) It can either become profitable by cutting costs or growing revenue. 2025 is the year where we give growing revenue a shot. If that doesnt work, then 2026 will be a very tough year.

Let’s fund what matters—forever.

6 Likes

@owocki can we see some of our future goals on Coinmarketcap, Coingecko etc please? Currently, those pages appear dated and out of vogue. It also says we are a fork of COMP and UNI, their marketcap-$470 million and $5.5 billion respectively. Gitcoin needs to have a fresh Outlook for sure. Everyone need to know that there is a pivot happening. Again - excited this conversation is even happening!!

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Might be a weird question - could we have a dex of our own like UNI under the Gitcoin umbrella-perhaps a Gitswap?Where a percentage % of profits from the swap be used for funding grants?

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I think this is a good idea; if any DAO member wants to compile copy to submit to coingecko and coinmarketcap, I’m happy to support.

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Where and how does GTC fit into this ambition?

I’ll be honest, this is also a selfish question. I’ve consistently kept 1/3 of my salary in GTC, because I believed and believe in Gitcoin’s future. This was at a time that the token value was between 6 and $20.

A way to increase the runway is also focusing enough on the value increase of GTC, is this no longer a point of focus?

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Where and how does GTC fit into this ambition?

Well, the revenue goes back to the treasury, and GTC has governance rights over the treasury. So it would follow that the revenue would increase the utility of the governance rights, at least to me.

Gitcoin Grants Lab owns GTC utility from here on out. More details here. I’m hoping theyll roll out a specific roadmap for GTC utility in the next quarter or two. An experiment in GG23 would be a good idea IMO.

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Allo.fund is an interesting idea to both make Gitcoin profitable & take worthy startups to the next level.

Is the concept to invest in projects in the allocation space from an existing treasury or raise from LPs? If the LPs are the way, there’s more than 1,000 family offices in this sheet which could potentially support that: Fund Your Purpose - Google Sheets

The track record ratio of grants allocated by Gitcoin to their resulting market cap is phenomenal overall, if investments went into the top grantees which also fit the thesis it would be even better.

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TBD. If you want to follow along as things develop, checkout the DAO Design Contest on research.allo.capital.

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