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.
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.
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