Give Spendlessly to Support Gitcoin Grants

Posted March 10, 2021 by Victor Rortvedt

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We’re excited to announce a new Spendless campaign that allows users to send interest on their DAI to the Gitcoin Grants Matching Pool Fund!

As with all Spendless campaigns, you’ll be able to see the impact your DAI is generating in real-time, with the interest donated ticking up as it is earned and redirected.

About Gitcoin Grants

Gitcoin Grants matching funds are used to boost the impact of small donors supporting open source software projects that produce public goods for the web3 ecosystem and the planet at large. The funds are deployed during matching rounds like the one that starts today, and runs through March 25, 2021. Projects will be eligible for $125,000 in matching funds using a quadratic funding formula. In simple terms, it means that small donors get more matching funds per $ donated than big donors, which helps normal people signal which projects get the most support.

Interested in quadratic funding? Here’s a video that explains it:

You can also read more and experiment with how it works here.

A Virtuous DeFi Cycle

gitcoin explainer

Using re-directed interest on DAI to support the Gitcoin Grants Matching Pool Fund is a DeFi dream realized - one that is impossible using the legacy financial system.

Instead of letting their funds sit idle, users can send a transaction on Spendless that triggers the following cascade of positive-sum events:

  • The DAI is deposited in Compound where it earns dynamic interest based on borrowing demand
  • That interest is redirected to the Gitcoin Grants Matching Pool Fund as a constantly flowing stream
  • Those Matching Pool Funds are used to boost the impact of small donations by Gitcoin Grants users who support open source projects that deliver public goods
  • Those projects receiving Matching Funds can help build a flourishing web3 ecosystem that prioritizes the common interest over extractive financing models
  • Instead of giving away their money via donations, Spendless users keep control over the DAI that is generating interest for Gitcoin Grants and can reclaim it whenever they wish

We're excited to show off this new philanthropic flywheel - so much so that we may just mint NFTs for users who start streaming interest to Gitcoin Grants during Round 9. Try it out here!

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