Gitcoin, known for its role in facilitating public funding in the Ethereum space, has announced a major organizational change by closing its primary software development branch, Gitcoin Labs. The decision was influenced by co-founder Kevin Owocki, who stated that achieving profitability in the current financial environment was not feasible.
Why Did Gitcoin Labs Shut Down?
Owocki communicated via his X account that the operational costs of the Grants Lab had far surpassed available resources. Discussions among Gitcoin’s senior leadership concluded with announcing a halt on new budgets for the remaining half of the year.
In light of the closure, remaining resources will be allocated to provide severance packages for impacted employees. The news coincided with a drop of about 2% in the value of Gitcoin’s primary asset, GIT coin.
How Will Gitcoin Restructure Its Operations?
Despite this setback, Owocki expressed optimism for the organization’s future. Gitcoin plans to operate with a leaner, more focused team, directing efforts towards enhancing the Gitcoin Grants program and managing its existing asset array more effectively.
This restructuring process initiated nearly a year ago has seen a pivot towards a capital-centric approach while preserving the community-oriented ethos. Notable changes included the merging of several DAOs in February 2024 and the termination of the Layer 2 Public Goods Network, as attention shifts to more viable projects.
Gitcoin is also set to discontinue its donation management platform, Grants Stack, and the Allo Protocol aimed at equitable capital distribution. However, it will continue to support the Human Passport identity verification solution.
Gitcoin has assured partners and users that essential technologies will remain operational during this transition. Ongoing efforts will establish how the technological changes will be implemented and which systems will be preserved.
Mathilda DV, head of the Gitcoin Grants Program, noted on X that this day marks a critical juncture for the organization. Although the closure is challenging, she remains optimistic about the program’s continued growth.
- Gitcoin Labs shut down due to financial constraints.
- Severance packages will be provided to affected employees.
- Focus will shift to enhancing Gitcoin Grants and asset management.
- Funding for the Grants Program is secured until approximately 2029.
The organization emphasizes its commitment to its partners, promising that ongoing support will be available as it navigates these changes. Gitcoin aims to maintain its legacy while adapting to the evolving market landscape.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/gitcoin-takes-bold-steps-to-focus-on-grants