Eomji pointed out that the issue with funding in the Web3 space isn’t a lack of financial resources, but rather a disconnect between how builders and protocols perceive grants. Builders often see grants purely as financial support, while protocols expect these grants to attract and retain long-term talent. This misalignment leads to the frustration of protocols investing funds only to have builders leave shortly after receiving the money.
2. Need Beyond Financial Support
Eomji emphasized that builders are searching for more than just financial backing; they desire robust support systems. This includes access to mentorship, community, and developer tools that can foster growth within the ecosystem. Providing comprehensive support can differentiate protocols, encouraging builders to remain engaged long-term instead of viewing grants as purely transactional financial aid.
3. Importance of Timing in Funding
Eomji explained how the timing of funding distribution significantly affects its effectiveness. Proactive funding can energize projects at their inception, while retroactive funding can reward those who have shown measurable impact over time. However, Eomji noted that choosing the right approach depends on the project's stage and goals, as combining strategies might yield the best results.
4. Challenges of Community-Driven Funding
Eomji discussed the flaws associated with community-driven funding models, such as the potential for bias and manipulation, which can occur through civil attacks and popularity bias. While offering a sense of community input, such models may require meticulous governance structures to avoid these pitfalls, ultimately complicating the funding process.
5. Diverse Funding Types and Their Use
Eomji outlined various funding types like bounty grants, hackathons, and airdrops. Each method serves different purposes; for example, bounty grants can attract short-term commitments, whereas proposal-based grants are better suited for long-term projects. Evaluating the specific needs and goals of an initiative is crucial when selecting the appropriate funding approach.
6. Incentives Must Align with Goals
Eomji stressed the importance of aligning funding incentives with both the stage and goals of the projects involved. Different initiatives will require tailored approaches; for instance, attracting new builders may warrant hackathons, while sustaining contributions might require ongoing support. By understanding these dynamics, protocols can enhance their ability to retain talent effectively.
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