26-4-2025 – Gitcoin, the esteemed Ethereum-based public goods funding protocol, has announced a major restructuring that will see the closure of its primary software development arm, Gitcoin Labs. The decision, unveiled on Friday, stems from mounting financial pressures and an increasingly challenging path to sustainable profitability.
The protocol, which has been instrumental in distributing north of $60 million through its innovative Quadratic Funding mechanism—a system co-developed with Ethereum’s Vitalik Buterin—is now embarking on a strategic realignment. The remaining financial reserves will be allocated towards redundancy packages for affected staff members.
Despite this substantial reorganisation, the protocol’s grants programme, a cornerstone of its operations, has secured funding well into the latter part of this decade, with projections extending to approximately 2029. This programme has historically provided crucial support to prominent blockchain initiatives, including Optimism, Polygon, Sei and Celo.
The restructuring extends beyond Gitcoin Labs, encompassing the discontinuation of both the Grants Stack management tool and the Allo Protocol, their blockchain-based democratic capital allocation system. However, the organisation will maintain its Human Passport digital verification infrastructure.
This strategic pivot follows a broader transformation implemented in February 2024, when Gitcoin consolidated its decentralised autonomous organisations (DAOs) and discontinued its Layer 2 Public Goods Network, whilst diversifying into yield-generating strategies and for-profit ventures.
Kevin Owocki, Gitcoin’s co-founder, emphasised that this transformation represents a strategic refocusing rather than a retreat. The organisation aims to operate with a more streamlined team, concentrating efforts on its grants programme and asset portfolio management.
Mathilda DV, who heads the Grants Program, expressed optimism about the protocol’s future trajectory, noting that whilst the Grants Stack chapter may be concluding, the fundamental grants initiative remains robust and is, in fact, being reinforced.
To assuage partner concerns, Gitcoin has committed to ensuring a seamless transition period, exploring potential technology transfers whilst maintaining necessary support systems. The protocol continues to position itself as a vital component of the ‘regen’ movement, which advocates for regenerative finance whilst honouring cryptocurrency’s original cypherpunk principles.
