Earn Double Matching: Donate With PAN on Gitcoin

Gitcoin’s fifth round of donation matching has now started, and will run through April 7. Gitcoin will match each donation using amounts calculated by the CLR matching formula. In short, that means that projects can earn more funds from the matching pool not just by having richer supporters, but by having more individual supporters who contribute small amounts as well.

For the first time, Panvala is matching donations made on the Gitcoin platform. That means donors can earn double matching: while Gitcoin matches all donations made during the round, Panvala will provide a second match. All you have to do to earn double matching is use PAN tokens to make your donations.

Screenshot 2020-03-03 at 17.10.19

Most projects on Gitcoin accept donations using any token. First, get PAN tokens for your donation from Uniswap. When you’re making your donation, select “PAN” from the token selector, and donate as many PAN as you want. Currently, that means donating about 65 PAN for each dollar you want to donate, but the value of PAN will fluctuate over time.

After this round of matching ends on April 7, the matching pool of 1.5 million PAN (currently worth about $20,000) will be distributed using the same CLR formula that Gitcoin uses. That means that projects can earn more matching funds from many small donors than from few large donors.

Panvala aims to generalize Bitcoin’s economics. Most people see BTC and ETH holders as just investors, but we see them as philanthropists. Holders dilute their share of the currency supply to subsidize the security of the network, and the security of a blockchain is a public good we can all share without degrading security for anyone else. People don’t think of holders as philanthropists because holders have made so much money over the years, but that’s the breakthrough! Since 2009, people have been outlandishly rewarded for subsidizing public goods.

In that light, let’s look at our track record as philanthropists. In Q4 of 2019, Bitcoin users spent 2500 BTC on transaction fees. BTC holders diluted their holdings to fund 150,000 BTC of block reward subsidies. They are matching contributions to Bitcoin’s security at 60x. In the normal world, people get excited when a rich person offers to match contributions at 2x: if we give a dollar, they’ll match with a dollar. But BTC holders are matching at 60x! They’re the most generous philanthropists in the world. If we can generalize this model to subsidize more widely useful things than blockchain security, it will have a giant impact on the world. That’s what we’re doing with Panvala.

In the quarter that ended on January 31, Panvala matched donations from our sponsors at 11.2x. For each token that came into the token supply as a donation, 11.2 went out as grants. We’re currently testing two hypotheses. First of all, we believe that like Bitcoin, high levels of matching can be sustained for over a decade. Secondly, we believe that this model matches as a multiple of the donations that come in, which means that Panvala itself can be shared among as many communities as want to use it.

This should be hard to believe — it certainly was for us. But if this model holds, we can create an incredible decade-long window when any community in the world can have their funding for public goods amplified at attractive rates. Think about all the Bitcoin mining operations that have sprung up out of nowhere since 2009 to earn rewards from Satoshi’s decision to subsidize security, and imagine that Satoshi had decided to subsidize other public goods instead. Firms would pop up all over the world — not to rack up power bills mining blocks, but to provide public goods that we’ve all wanted but couldn’t coordinate to fund.

That’s why we want you to donate with PAN on Gitcoin. Panvala has already matched at 11.2x for a quarter, but with your help, we can demonstrate that this kind of matching can sustain itself just like Bitcoin has. Once we’re confident that this model works, we’ll need your help to share Panvala with the rest of the world.

Want to learn more?

Join Panvala today: https://panvala.com/

Follow us on Twitter: https://twitter.com/PanvalaHQ


@niran This is a great post! Message comes across simply and clearly.

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I’ve collected data from the Gitcoin API, the Gitcoin web site, and the blockchain to summarize the PAN donation activity in the round so far. The top ten projects are listed below, and the full data is in this spreadsheet.

Grant Donated Tokens Donation Count Quadratic Match $1 Match (USD) 1.5M PAN Allocated
Fuel Labs 3097 4 8,082.96 $24.43 160,836.84
White Hat Hacking 1216.3508 6 5,718.93 $20.71 113,796.80
DAppNode 1335 4 4,935.09 $19.31 98,199.75
Lodestar -Ethereum 2.0 Client 3200 2 4,749.19 $18.96 94,500.70
Rotki - The portfolio tracker and accounting tool that respects your privacy 1123.8035 4 3,999.59 $17.48 79,584.98
lexDAO - Standardize Legal Goods on Ethereum in 2020 1710 2 3,322.20 $16.02 66,106.08
MetaGame 976.5138 5 3,111.52 $15.54 61,913.93
The Ethereum 2.0 Annotated Specification 1520 2 2,991.73 $15.25 59,530.31
Daohaus/Pokemol 1625.0016 3 2,692.71 $14.52 53,580.33
1UP WORLD 868.0008 3 2,298.82 $13.49 45,742.43
Omen.eth - A prediction market protocol and product owned by the Dxdao 1160 4 2,262.72 $13.40 45,024.28

There’s one more week of this round of Gitcoin Grants. Thanks to those who have donated in PAN so far. The more donations we convince people to make in PAN, the easier it will be to show people how Panvala’s matching model works. Last quarter, the matching formula was:

This quarter, the matching formula so far is:

You control the denominator! We want to stress test the multiplier by getting as many donations as we can. That puts downward pressure on the multiplier so we can see how the market responds. When the multiplier stabilizes, that’s when we’ll be able to predictably demonstrate Panvala’s ability to match the donations that flow into it, just like Bitcoin’s block rewards provide a predictable security budget for the network.

Here’s the latest update of the donation matching data so far. (Here’s the full spreadsheet again.) This matching round ends tomorrow evening NYC time, so if you’re planning on making donations, now is the time to get them in on Gitcoin Grants!

Grant Donated Tokens Donation Count Quadratic Match $1 Match (USD) 1.5M PAN Allocated
The Commons Stack: Iteration 0 12417.3201 7 54,483.27 $71.41 328,040.87
DAppNode 2855.7444 7 18,986.39 $42.57 114,316.02
1UP WORLD 5836.5008 4 14,026.51 $36.73 84,452.84
Rotki - The portfolio tracker and accounting tool that respects your privacy 3102.5461 5 11,604.76 $33.50 69,871.66
Commons Simulator: Modeling Sustainable Funding for Public Goods 2460.8508 6 11,162.08 $32.87 67,206.28
Fuel Labs 3157 5 9,535.76 $30.46 57,414.33
LeGrandJeu VR - bring Token Economics Gaming to the whole world! 2028.5008 5 9,011.33 $29.64 54,256.73
CultureStake 5331.35 2 8,006.93 $27.99 48,209.32
Lodestar -Ethereum 2.0 Client 3260 3 5,876.81 $24.13 35,383.96
White Hat Hacking 1216.3508 6 5,718.93 $23.81 34,433.38

This round of Gitcoin Grants matching has now ended. Congrats to all the grant recipients! Grantees received 116,479 PAN in donations, and will be matched by 1,383,520 PAN from Panvala’s token supply during the first week of May. We encourage all new token holders and anyone who’s curious about Panvala to join us at the Panvala Spring Orientation session on Tuesday!

# Grant Donated Tokens Donated Value Donation Count Quadratic Match 1.5M PAN Allocated Matching Value Multiplier
1 The Commons Stack: Iteration 0 12417.3 $279.86 7 54,483.27 228641.456 $5,153.18 18.41x
2 DAppNode 7700.7 $173.56 8 35,432.42 148693.7178 $3,351.30 19.31x
3 LeGrandJeu VR - bring Token Economics Gaming to the whole world! 6489.2 $146.26 7 31368.08 131637.556 $2,966.88 20.29x
4 1UP WORLD 5836.5 $131.54 4 14,026.51 58862.84741 $1,326.67 10.09x
5 Chris Blec - DeFi Education & Transparency 4692.9 $105.77 5 12,068.18 50644.65195 $1,141.44 10.79x
6 Rotki - The portfolio tracker and accounting tool that respects your privacy 3102.5 $69.93 5 11,604.76 48699.89841 $1,097.61 15.70x
7 Commons Simulator: Modeling Sustainable Funding for Public Goods 2460.9 $55.46 6 11,162.08 46842.15285 $1,055.74 19.03x
8 Kickback 4703.4 $106.01 4 11,099.45 46579.34853 $1,049.82 9.90x
9 1inch.exchange - Fully On-Chain DEX Aggregator (1Split) 4480.9 $100.99 5 10,151.58 42601.55728 $960.16 9.51x
10 Fuel Labs 3157.0 $71.15 5 9,535.76 40017.2568 $901.92 12.68x
Gitcoin Grants Round 6+ Development Fund * 5373.7 $121.11 242 63827.4814 $1,438.56 11.88x

* Since the Gitcoin Development Fund receives contributions from almost every donation, Panvala is matching those donations at the average match for all donations (11.88x) instead of using the quadratic funding formula.

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