1. Funding Challenges in Web3

Silas emphasized the critical issue of funding in the Web 3 ecosystem, highlighting that inadequate funding is one of the main obstacles to the expansion and execution of blockchain adoption. He pointed out that traditional funding methodologies, such as grants and retroactive funding, often fall short, being subjective or delayed. Silas argued that these models not only fail to fairly reward builders for their impact but also lead to inefficiencies for protocols that seek to maximize the value of their tokens.

2. Introduction of On-chain Impact Funding

Silas proposed a transformative solution through on-chain impact-based funding, suggesting that ecosystems should only pay for the incremental value delivered. He explained that this model would create a more equitable framework, allowing builders to get compensated based on the actual impact they contribute, thereby alleviating concerns for protocols regarding the efficient deployment of their capital. By focusing on measurable outcomes, this model aims to align rewards with contributions better.

3. Examples of Successful Impact Models

To illustrate the potential of on-chain funding, Silas shared examples of protocols like Liquity and Beefy. He noted that Liquity has effectively implemented a revenue-sharing mechanism with front-end builders, incentivizing them to onboard new users. Similarly, Beefy rewards strategy developers with a share of the revenue generated from their yield optimization strategies. These examples show that impact-based funding leads to broader participation and innovation within the ecosystem.

4. Simplifying Integration with Divvi

Silas detailed how protocols can easily integrate with Divvi by defining an impact reward function and pledging capital. He emphasized that this flexibility allows ecosystem developers to experiment with their models, which can evolve as projects reach different growth stages. For builders, utilizing Divvi means that they only need to identify the protocols that align with their product offerings for seamless integration and reward registration.

5. Encouraging Decentralized Marketing Strategies

Silas mentioned an innovative feature in Divvi that permits decentralized marketing through local ambassadors. This approach incentivizes ambassadors to onboard high-value users who can provide ongoing benefits to the ecosystem, rather than simply driving transactions. This strategy not only fosters community engagement but also aligns the incentives of various stakeholders to work collaboratively towards the growth of the ecosystem.

6. Exploring Longtail Funding Opportunities

Silas expressed excitement about "longtail funding," which allows for funding specialized applications that might serve niche markets. He cited examples like Tucop, designed for the Colombian economy, showcasing how targeted applications benefit from Divvi funding. By embracing such local solutions, the overall ecosystem can grow in diverse and tangible ways, thereby increasing blockchain adoption globally.