Ethereum Foundation 2020 Spring Update
The Evolution of Ethereum Foundation's Funding Model
As the Ethereum ecosystem continues to grow and mature, the Ethereum Foundation (EF) has been working tirelessly to support the development of the network and its applications. In this article, we will delve into the EF's funding model, exploring the different types of allocations and how they are used to support the ecosystem.
A Brief History of the EF's Funding Model
Prior to the launch of the EF Grants Program in 2018, nearly all funding was geared toward "EF teams." In 2018, substantial allocations were made to invest in quality work in areas determined to have the greatest need. This helped to create a firmer foundation, on top of which the energy and sheer number of new contributors could be more sustainable into the future.
Type A: Recurring Support
The EF's Type A allocations are recurring support areas that are essential for the foundation's work. These include teams such as Geth and Solidity, which represent where things began, as well as newer teams like Eth1.x and Stateless research. Additionally, administrative and operations roles, like the people behind the ESP team, communications and community, or administration and legal, also fall under this category.
In the last two years, the Foundation has given more autonomy to Type A teams over their own budgets. This structure better reflects how supported teams are actually operating as teams. Each year, teams are asked to submit roadmaps and budget proposals, while others work to evaluate and approve their asks by evaluating their own needs.
Type B: Public Grant Process
The EF's Type B allocations are public grant processes that are designed to support external teams and projects. The Ecosystem Support Program (ESP) leads the way in this area, allocating resources where they will have the biggest impact on Ethereum's growth and adoption. The ESP team evaluates proposals that come in through the public inquiry form, incorporating peer review, discussions with the applicant, and expert advisors as needed to form a plan to help teams succeed.
Type C: Delegated Domain Allocations
Type C allocations are delegated domain allocations that allow the EF to focus on specific areas of need. These domains are identified by experts who can connect with builders to get work funded through grant-based allocations. This approach is more proactive and targeted than the open grant process, allowing the EF to identify and support areas that are critical to the ecosystem's growth.
Type D: Third Party Funding
Type D allocations are third-party funding models that help to decentralize the EF's allocation process. These include community-driven grant matching, like Gitcoin's CLR rounds, and DAO funding, like Moloch. The EF also supports UNICEF's Crypto Fund, which selects and distributes funds to projects that their team works to identify, and to ETHGlobal, which retains independence and redistributes funds via hack bounties.
The Future of the EF's Funding Model
In 2020, the EF is in a position to comfortably meet or exceed the commitment made last May. Specifically, the EF will likely fall within the range of 25-40 million USD in total allocations, depending on the need of the ecosystem, the number and quality of ESP applicants, and progress in scaling new allocation types. The EF's support for efforts related to eth2 will also continue to ramp up as needed.
Conclusion
The EF's funding model has evolved significantly over the years, with a focus on supporting the growth and development of the Ethereum ecosystem. The different types of allocations have been designed to support various areas of need, from recurring support to public grant processes and delegated domain allocations. As the ecosystem continues to mature, the EF will continue to adapt and evolve its funding model to ensure that it remains relevant and effective in supporting the growth and development of Ethereum.
What's Ahead in 2020?
The EF is excited to see where the year will take Ethereum and its ecosystem. With the launch of eth2 on the horizon, the EF is poised to play a critical role in supporting the development of the network and its applications. As the EF continues to evolve its funding model, it will be essential to stay up-to-date with the latest developments and to engage with the community to ensure that the EF remains relevant and effective in supporting the growth and development of Ethereum.
Stay Tuned for More Updates
The EF is committed to keeping the community informed about its progress and developments. Follow the EF Blog and @Ethereum for the latest updates, and stay tuned for more information about the EF's funding model and its impact on the Ethereum ecosystem.
Source: https://blog.ethereum.org/en/2020/05/19/ethereum-foundation-spring-2020-update
