diff --git a/apps/docs/blog/2024-11-19-auto-retro-funding/AutoRF-final-funding.png b/apps/docs/blog/2024-11-19-auto-retro-funding/AutoRF-final-funding.png new file mode 100644 index 000000000..c32f90f7c Binary files /dev/null and b/apps/docs/blog/2024-11-19-auto-retro-funding/AutoRF-final-funding.png differ diff --git a/apps/docs/blog/2024-11-19-auto-retro-funding/Oso-X-Polygon.png b/apps/docs/blog/2024-11-19-auto-retro-funding/Oso-X-Polygon.png new file mode 100644 index 000000000..1b845c8da Binary files /dev/null and b/apps/docs/blog/2024-11-19-auto-retro-funding/Oso-X-Polygon.png differ diff --git a/apps/docs/blog/2024-11-19-auto-retro-funding/Split-overview.png b/apps/docs/blog/2024-11-19-auto-retro-funding/Split-overview.png new file mode 100644 index 000000000..14df0f60b Binary files /dev/null and b/apps/docs/blog/2024-11-19-auto-retro-funding/Split-overview.png differ diff --git a/apps/docs/blog/2024-11-19-auto-retro-funding/index.md b/apps/docs/blog/2024-11-19-auto-retro-funding/index.md new file mode 100644 index 000000000..295f6801b --- /dev/null +++ b/apps/docs/blog/2024-11-19-auto-retro-funding/index.md @@ -0,0 +1,106 @@ +--- +slug: auto-retro-funding +title: "Auto Retro Funding: Continuous, Simple, Automatic" +authors: [jabolol, ryscheng] +tags: [open source, retroactive public goods funding, hackathon] +image: ./Oso-X-Polygon.png +--- + +# Auto Retro Funding: Continuous, Simple, Automatic + +Open-source projects power innovation across industries, yet they often face a +significant challenge: securing sustainable funding. Retroactive funding offers +a promising solution by rewarding impactful contributions based on past results, +but today’s retro funding rounds are **complex, time-consuming, and +infrequent**, making them unreliable sources of support for public goods. + +This inspired us to build +[**AutoRF**](https://ethglobal.com/showcase/autoretrofunding-bxy5k) during +[ETHGlobal San Francisco 2024](http://ethglobal.com/events/sanfrancisco2024). +AutoRF makes retroactive funding **continuous, simple, and scalable** by +removing the barriers that hold current models back. + + + +## The Problem: Retro Funding Rounds Today + +Retroactive funding is a fairer way to reward contributors since it evaluates +impact after the fact. But running these rounds today is **labor-intensive and +hard to scale**, limiting their potential. + +Take [Optimism’s Retro Funding](https://retrofunding.optimism.io) as an example. +Each round involves hundreds of hours of scoring and deliberation by voters, and +even then, **fair fund allocation isn’t guaranteed** +([source](https://docs.opensource.observer/blog/rf5-ballot-box)). Human scoring +is not only tedious but can also create perverse incentives, like prioritizing +popularity over true merit. + +This overhead discourages broader adoption, leaving many impactful public goods +underfunded while making retro funding mechanisms unreliable and difficult to +sustain. + +## Introducing AutoRF + +AutoRF is designed to **automate retroactive funding**, combining the +**transparency of on-chain systems** with the **flexibility of off-chain +calculations** to deliver a scalable, fair solution. It empowers funders to +create data-driven funding pools with minimal effort while ensuring contributors +are rewarded accurately. + +### How AutoRF Works + +1. **Define Funding Pools**: Funders set up pools and define measurable metrics, + like GitHub activity. +2. **Track Contributions**: AutoRF tracks contributions automatically, gathering + data on metrics like commit timing, frequency, and repository engagement. +3. **Reward Contributors**: Rewards are distributed transparently using smart + contracts, with metrics recalculated continuously. + +Unlike fully on-chain solutions, AutoRF keeps **calculation logic off-chain**. +This approach allows flexibility to refine metrics over time and helps mitigate +gaming while maintaining trust and transparency through on-chain reward +distribution. + +![Split Overview](./Split-overview.png) + +### The Grinder's Fund x Polygon + +At ETHGlobal SF 2024, we showcased AutoRF with **The Grinder’s Fund**, a live +retro funding pool for hackathon participants. Sponsored by +[**Polygon**](https://polygon.technology) and +[**Dabl Club**](https://www.dabl.club), this fund distributed **$1,000 USD** to +reward the hardest-working teams. + +The Grinder’s Fund evaluated GitHub activity to calculate impact, analyzing +metrics like commit size, timing, and frequency. Over **60 projects**, with +roughly **300 participants**, signed up by Sunday morning. This real-world test +demonstrated AutoRF’s scalability and efficiency. The final distribution is +available on the +[Splits website](https://app.splits.org/accounts/0xd90561e9c1d4B58b0aFfB39B5eb39494C4D8A9C6/?chainId=137). + +![The Grinder's Fund Distribution](./AutoRF-final-funding.png) + +## Why AutoRF Matters + +AutoRF lowers the barriers to retroactive funding by reducing overhead and +complexity. By making these processes automatic, funders can create sustainable, +**merit-based funding systems** without the logistical challenges of traditional +retro rounds. + +This system not only benefits funders but also gives contributors consistent +incentives for impactful work, fostering collaboration and innovation across +ecosystems. + +## A Vision for the Future + +AutoRF is a step toward a future where **public goods funding is seamless and +reliable**. Inspired by Karl’s concept in +["Ether’s Phoenix"](https://medium.com/ethereum-optimism/ethers-phoenix-18fb7d7304bb), +which equates impact with profit, AutoRF creates a system where funding is +predictable, scalable, and fair. + +As AutoRF evolves, we aim to scale its impact across different domains, from +open-source software to education and climate initiatives, making funding +continuous, automatic, and accessible. + +Public goods should not just survive; they should thrive.