impact retrofunding
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Optimism’s Retroactive Public Goods Funding functions as a capital allocation mechanism by rewarding projects based on their demonstrated value through Impact-Based Metrics (IBM), which evaluate contributions using clear, measurable criteria.
This approach emphasizes assessing past contributions rather than predicting future needs, fostering a data-driven method for funding public goods. In collaboration with Gitcoin and Open Source Observer, Optimism developed IBM to assess and reward projects based on their demonstrated impact, ensuring that public goods builders are fairly compensated for their work within the ecosystem. This model ensures that resource allocation is transparent, equitable, and directly aligned with long-term ecosystem growth.
This approach is ideal for grant managers, program managers, and community leaders in web3 ecosystems who want to distribute resources based on clear, measurable impacts rather than speculative future promises.
Optimism’s Retro Funding is centered around Impact-Based Metrics (IBM) to evaluate and reward projects based on value already created. Resources are distributed based on measurable past impact, incentivizing projects to deliver meaningful value without relying on speculative predictions.
Optimism’s Retro Funding involves aligning projects with Optimism’s roadmap, establishing specific onchain criteria, and implementing a User Trust Model to ensure credibility. Projects must meet specificonchain criteria, such as active usage and the deployment of contracts on the Superchain. To ensure consistent, verifiable, and transparent evaluations, impact metrics are standardized. Assessments of projects are guided by a user trust model, which incorporates indicators like Farcaster ID, Passport score, and Optimist NFT ownership. Qualified evaluators, known as badgeholders, assess each project’s impact using these trusted metrics. Funding is then allocated based on the project rankings, often managed through onchain processes to maintain transparency.
Uses onchain data to measure the impact of projects over time, minimizing bias and subjectivity.
Metrics are designed to reward projects that contribute directly to Optimism’s strategic goals, ensuring that incentives align with broader ecosystem success.
Clear, measurable criteria allow for transparent assessments of each project’s contributions, fostering accountability within the system.
By rewarding projects for value already created, the system encourages long-term contributions, promoting sustainable development and ecosystem growth.
