The case for privacy: GG24 MACI <> Allo Capital

Problem and Impact

Privacy is a human right, essential to human dignity, autonomy, and freedom. Without privacy in the digital age, our individual autonomy, safety, democratic participation and economic freedom is at risk.

The Ethereum ecosystem lacks robust and well-adopted privacy infrastructure. While Ethereum secures billions of dollars, the vast majority of transfers, trades, and votes happen in the open for everyone to see. There are no default privacy features in major Ethereum wallets - privacy roadmaps, such as Vitalik’s simple L1 privacy roadmap, acknowledge these gaps.

While privacy tooling usually benefits everyone, they can generate little direct revenue. How can we ensure that protocols that aim to improve people’s lives and freedom are properly funded? While there is documented usage of privacy preserving voting and funding applications like Gitcoin, clr.fund, and MACI, none of these rounds were specifically targeting privacy protocols. Using a privacy preserving voting system such as MACI aligns closely with the goals of such a round.

Why funding privacy projects matters

Privacy projects face obstacles in securing sustainable funding. Traditional venture capital models can often align poorly with privacy-focused development, and recent regulator insinuations have caused additional chilling effects on funding. Some privacy projects are public goods without revenue sources, so have little upside for investors. And while it is possible to attract funding, many privacy endeavours can be viewed as risky, as they carry regulatory risk and uncertainty. The recent privacy market report by Web3Privacy Now states that “the post-Tornado Cash investment climate in privacy remains mild”. According to their research, in Q1 and Q2 2025, about $161.6 million was invested in privacy, with B2B decentralised privacy projects attracting the most funding. When compared with broader crypto funding, this is tiny, leaving privacy builders fighting over a smaller slice of the funding pie.

Stepping outside of the Ethereum sphere, being able to fund initiatives privately has tangible impacts in the real world. For example, if you fund a Ukrainian project via some onchain mechanism, this information is publicly visible and could have tangible impacts on you if Russian authorities linked it to your identity. In a scenario where Russian is your home, this would be incriminating information, and would strongly disincentivise you from contributing to the funding in the first place.

Consider journalists working in authoritarian regimes who need to receive funding for investigative work. Public transactions create permanent records that can be used for persecution years later. Activists organising protests or supporting dissidents face similar risks if their financial support is publicly traceable. These real-world scenarios demonstrate why privacy infrastructure deserves dedicated funding rounds that recognise their crucial role in protecting day-to-day actions and also critical societal functions.

Why MACI?

Using a private voting protocol such as MACI aligns closely with the theme of a privacy project funding round and offers several benefits. In the context of capital allocation, privacy is critical to enabling a fair process:

  • Prevents collusion: if votes can be seen at any point, the door is opened to undemocratic methods of collusion, such as vote buying.
  • True preference expression: Allows participants to express their true preferences free from judgement and bribery.
  • Reduces bandwagon effects: This is where participants fund the projects already getting the most attention and votes. If a project can be seen to already have all the votes, what is the point in voting for less popular options?

Gitcoin’s Unique Role & Fundraising

As a pioneer in quadratic funding for public goods, Gitcoin is in a unique position to help fund privacy projects, and doing so in a privacy-preserving manner using private voting protocols. By taking on this challenge, Gitcoin addresses one of the core contradictions in the privacy space: privacy tools need funding, but traditional funding mechanisms compromise privacy.

In addition, Gitcoin is seeking to reposition itself around Ethereum’s biggest problems. In the context of the recent pivot of the Ethereum Foundation into Defipunk, and more strongly advocating for privacy on Ethereum, the time to accelerate the funding of privacy projects is now.

Success Measurement & Reflection

Success can be measured by:

  • Participation and feedback by donors/voters
  • Funds received by projects part of the round(s)

Additional metrics could include the development of new privacy tools, increased adoption of existing privacy protocols, and the emergence of sustainable funding models. Long-term success could mean creating a funding environment where privacy developers can focus on building rather than constantly seeking funding, ultimately strengthening the broader Ethereum ecosystem.

5 Likes

Hello, i recently saw your DAO project for GG24 Maci and totally agree privacy, freedom, and autonomy is not a privilege but a right. I do believe in the robustness of The ETH ecosystem however i do see that ETH is slow in terms of transaction speed but is good in security. I would love to join your team and work on automations for you especially in recruiting funding. My telegram is @footballallseason

Draft Scorecard

2025/08/18 - Version 0.1.1

By Owocki

Prepared for johnguilding re: “The case for privacy: GG24 MACI <> Allo Capital”

(vibe-researched-and-written by an LLM using this prompt, iterated on, + edited for accuracy quality and legibility by owocki himself.)

Proposal Comprehension

TITLE
The case for privacy: GG24 MACI <> Allo Capital

AUTHOR
johnguilding

URL
https://gov.gitcoin.co/t/the-case-for-privacy-gg24-maci-allo-capital/22491

TLDR

The proposal argues for a dedicated Gitcoin Grants round to fund privacy projects, run with MACI (Minimum Anti-Collusion Infrastructure) to align the funding mechanism with the domain’s values. It frames privacy as a human right, identifies gaps in Ethereum’s current privacy infrastructure, and makes the case that privacy projects lack sustainable funding due to regulatory chill and limited revenue upside.

Proposers

johnguilding

Domain Experts

Not explicitly listed. Mentions Vitalik’s privacy roadmap and cites a Web3Privacy Now market report, but no experts directly attached to the proposal.

Problem

Ethereum has little default privacy infrastructure, leaving transactions, votes, and funding visible on-chain. Privacy projects are underfunded due to lack of VC upside and regulatory chilling effects. Without targeted funding, critical privacy tools may not be built or adopted.

Solution

Run a Gitcoin round dedicated to funding privacy infrastructure, using MACI for private voting to reinforce the theme and ensure fairer allocation (reducing collusion, vote buying, and bandwagon effects). Gitcoin is positioned uniquely to do this given its role in public goods funding.

Risks

  1. Executional: No clear operator or domain expert team or software listed yet, raising questions about who would design, curate, and run the round.
  2. Adoption: Without credible builders or well-prepared applicants, the round could underperform.
  3. Technical: MACI is still complex to deploy; operational readiness by October may be challenging.

Outside Funding

No outside funding noted. The proposal references $161.6m invested into privacy projects in 2025 but does not tie those funds to this initiative.

Why Gitcoin?

Gitcoin is uniquely suited to this because it helped pioneer quadratic funding, already funds public goods, and can provide legitimacy to privacy projects by showing credible public support. Using MACI is thematically and practically aligned with Gitcoin’s pluralistic experiments.

Owockis scorecard

# Criterion Score(0-2) Notes
1 Problem Focus – Clearly frames a real problem, (one that is a priority), avoids “solutionism” 2 Strong articulation of the need for privacy funding and why it matters.
2 Credible, High leverage, Evidence-Based Approach – Solutions are high-leverage and grounded in credible research 2 Good framing but lacks detailed strategy, operators, or specific leverage plan.
3 Domain Expertise – Proposal has active involvement from recognized experts 1 No experts listed other than MACI team. Cites reports and Vitalik’s roadmap but no operators attached.
4 Co-Funding – Has financial backing beyond just Gitcoin 0 No outside funding mentioned.
5 Fit-for-Purpose Capital Allocation Method – Methodology matches the epistemology of the domain 2 Excellent alignment: privacy funding round run with MACI is a strong match.
6 Execution Readiness – Can deliver meaningful results by October 1 Unclear if there is a team to execute. Risky without identified operators.
7 Other - general vibe check and other stuff I may have missed aboev… 1 Strong theme, but vague in execution details. Enthusiasm is there, but scaffolding missing.

Score

Total Score: 9 / 14
Confidence in score: 70%

Feedback:

Major

  • Needs software and operators attached before October to be viable.
  • Outside funding or at least partnership commitments would improve legitimacy and sustainability.

Minor

  • Consider clarifying which types of privacy projects are in-scope (infra, wallets, ZK tools, journalism support?).
  • Include success measurement beyond participation/funds raised (e.g. adoption or developer traction).

Steel man case for/against:

For

This proposal puts privacy front and center at a time when Ethereum is under increased scrutiny and lacks default privacy features. Gitcoin can make a meaningful stand by funding privacy projects in a way that matches the ethos of the domain. Using MACI both advances experimentation in capital allocation and sends a powerful signal about the importance of private coordination.

Against

The proposal lacks concrete execution details: no domain experts, operators, software proivders, or co-funders are named. Without those, this risks being an aspirational idea rather than a round that can deliver by October.

Rose/ Bud/Thorn

Rose
The thematic alignment between privacy funding and running the round with MACI is excellent. This is one of the strongest narrative fits of any proposal.

Thorn
The absence of execution detail is glaring. Without experts, partners, or funding commitments, it’s unclear if this can be delivered.

Bud
If domain experts and credible privacy projects are rallied around this quickly, it could blossom into a flagship Gitcoin round that both funds important work and positions Gitcoin as a leader on one of Ethereum’s hardest problems.

Feedback

Did I miss anything or get anything wrong? FF to let me know in the comments.

Research Notes

  • Open question: Are there credible privacy builders ready to apply if such a round is launched?
  • Future diligence: identify potential co-funders (e.g. EF privacy groups, Web3Privacy Now, ZK projects) and operators who could lead the round.
1 Like

okay longtime reader first time writer here going to weigh-in:

How important is it that we efficiently fund PRIVACY and privacy related builders and projects, especially ones targeting the key problems facing privacy on the EVM

vs.

How important is it that the results of that allocation round are conducted in a private manner?

the second is wayyyyyy less important than the first IMO - as someone who has participated in several gitcoin rounds before for both a privacy and non-privacy related projects I can say that having insight into the funding round stats probably helps donors make a snapshot decisions to donate - its a proxy of trust and in ways a popularity contest of sorts but it works. are people going to miraculously donate more because the privacy round is private? probably not. is collusion really a concern during a dedicated privacy round? maybe? I dunno I like to think the cluster-based matching of the recent rounds has gotten pretty good at addressing that.

I’m not saying I don’t like the MACI idea - just that funding a privacy round > that round being private itself

@johnguilding — thanks for surfacing this important theme.

Evaluated using my steward scorecard — reviewed and iterated manually for consistency, clarity, and alignment with GG24 criteria.


:white_check_mark: Submission Compliance

  • Problem & Impact: :white_check_mark: strong articulation of privacy as a human right and Ethereum’s gaps
  • Sensemaking: :white_check_mark: cites Vitalik’s roadmap + market reports, though more ecosystem mapping needed
  • Gitcoin Fit & Fundraising: :warning: aligned but no external funding confirmed
  • Success Metrics: :warning: focused mostly on participation/funds raised; adoption not specified
  • Domain Info: :warning: no domain experts/operators listed
  • Verdict: Compliant, but aspirational and under-specified on execution

:bar_chart: Scorecard Evaluation

Total Score: 9 / 16

Criteria Score Notes
Problem Clarity 2 Frames the urgency of privacy well, ties to real-world risks + Ethereum gaps
Sensemaking Approach 2 Good framing (Vitalik’s roadmap, Web3Privacy Now), but lacks broader ecosystem synthesis
Gitcoin Fit 2 Strong thematic fit: Gitcoin running a MACI-powered privacy round is credible and symbolic
Fundraising Plan 0 No co-funders or external partners listed
Capital Allocation Design 2 Excellent alignment between theme and method (privacy round run with MACI)
Domain Expertise 1 No confirmed experts; cites reports, but needs named stewards/operators
Clarity & Completeness 0 Lacks detail on scope (infra vs wallets vs journalism), ops plan, or October readiness
Gitcoin Support Required 0 Would require heavy Gitcoin scaffolding (ops, software, expert recruitment)

:pushpin: Feedback for Improvement

Where I align with Owocki:

  • The narrative fit (privacy round run with MACI) is excellent.
  • But without experts, operators, or co-funders, this risks being an aspirational idea.
  • Needs an execution team and a tighter scope before October.

What I’d add:

  • Clarify the domain surface: is this infra (ZKPs, wallets), governance/privacy tools, or broader human rights work?
  • Add co-funding signals (EF privacy groups, Web3Privacy Now, zkSync/Foundation, etc).
  • Identify 2–3 domain stewards with credibility in privacy/security.
  • Specify deliverables beyond “funds distributed” — e.g. new tools launched, adoption metrics, or user growth.

:yellow_circle: Conditional Support

I would support this domain if:

  • At least 2–3 domain experts and an operating team are confirmed
  • One co-funder (EF, L2, or privacy org) is soft committed
  • The scope is narrowed and deliverables for October are defined

Otherwise, this remains a strong idea but execution readiness is too low for GG24.