Welp, today is the day.
A few months ago, the temp checks were positive.
A few weeks ago, we announced Allo Capital to overwhelmingly positive sentiment.
But now that there is a budget attached, I am curious to see if stewards are more critical.
Here’s what I think of Allo.capital’s current course and speed.
Spinout Precedents
We have had other spinouts. Spinout precedents:
- KERNEL is one from 2021-22..
- KERNEL used $500k in Gitcoin capital. We negotiated a token veto right and a handshake on 24% of a KERNEL token going to Gitcoin, as well as information rights. It is unclear exactly what course they are on and if they will ever launch a token or return financial value back to Gitcoin.
- Publicworks.fm (formerly pgDAO) is another from 2023.
- Publicworks.fm spent somewhere between $400k and $1.4m of Gitcoin capital, depending on how you count. We are still hoping to paper their spinout terms 2 years later, and in the meantime, Gitcoin legally owns 100% of the IP. As a final destination, I think that 10% of the carry, and information rights, for Fund 1 and all future Funds is fair for that amount of startup capital.
- The Passport.xyz Spinout is the most recent.
- It had more generous economics (nearly $3m in spinout capital when you include forward 12 months of revenues) and had a good outcome (which will be announced soon on2/10). Passport is by far our most forthright and successful spinout. So kudos to that team!
You can read more about these subDAOs and how their value may flow back to GTC here.
I support Allo.capital spinout
I am in support of this proposal because I think it solves for some of our core challenges that Gitcoin has been facing circa late 2024.
Especially I think that systematically going multi-mechanism is going to create much more adoption, which will lead to more revenue/profit (and value back to GTC).
While informally I support this proposal, formally, I will be abstaining from voting. This is because I am part of the Allo capital team and abstaining from voting where there are conflicts of interest is a best practice in the governance manual.
How I think about the risk/reward of Allo.Capital
From 2017 to 2021, I was the CEO of a team that launched Gitcoin and brought Gitcoin Grants from 0 to 1… we went from nothing to a household name worth $1billion FDV. In 2022, I passed the torch to a new generation of leaders.
Note worthy: we spent about as much $$$ on Gitcoin from 2017 to 2021 as Allo.Capital will have in seed funding in 2025. (though a dollar is admittedly worth about less these days due to inflation :P).
I would be honoured if the tokenholders of Gitcoin would grant me license to launch this subDAO, which could flow financial value back to Gitcoin if successful. While I can’t promise anything, our aspiration is to return more value back to Gitcoin than we take! Just like passport did.
Resources for Further Diligence
Here are some links for anyone doing diligence on Allo.Capital who wants to see what we’ve been up to