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Cryptocurrency exchange Kraken announced that it will pay $ 150,000 in donations to support open source Ethereum (ETH) projects on Gitcoin.
Gitcoin is a developer funding platform based on a hybrid model of sponsored giving and direct community support. Through its quadratic funding model, community donations are used as a guide to identify projects that should receive the most appropriate funding. The quadratic formula ensures that separate contributions are weighted more than a single large donation. For example, two people who donate 1 DAI will result in a much higher match than one person who will send 2 DAI.
Kraken’s participation comes as Gitcoin launches its eighth Gitcoin Grants Round, or GR8. The total match pool amounts to $ 1 million, with other funding partners including Binance, Synthetix, the Ethereum Foundation, and others.
Only projects in the “Ethereum Infrastructure Tech” category will be eligible for the Kraken pool. These include many client teams, wallet technologies, and other basic infrastructure projects. The distinction was likely introduced because Gitcoin grants can also be awarded to content creators or DApp projects, which would fall outside Kraken’s stated mission of “empowering volunteer developers and projects that advance the industry.”
The company was previously involved with direct grants to Bitcoin developers and Bitcoin infrastructure companies, having pledged $ 500,000 so far. Funding of Ethereum’s infrastructure is a first for the exchange, which is said to have been spurred by the growing maturity of the network.
The Gitcoin Grants Round will continue to accept donations until December 17, after which the distribution of grants will take place according to the matching formula.
