How Funding Fragmentation Holds Ethereum Back
Ethereum has transformed over the last four years, evolving from a simple network into a powerhouse that processes thousands of transactions at much lower costs. However, this success has led to fragmentation, causing difficulties for users navigating multiple networks. The funding landscape has also become fragmented, hindering builders from accessing sustainable funding throughout their project lifecycle. Traditional funding often favors early-stage projects, leaving long-term needs overlooked. Blockchain-powered mechanisms like retroactive funding and quadratic funding offer solutions. Retroactive funding rewards projects based on their impact rather than speculation, ensuring vital infrastructure receives support. Quadratic funding amplifies community support by matching small donations from various supporters, leveling the playing field for smaller initiatives. By tokenizing projects, creators can engage a wider supporter base, democratizing capital access. The essence of these funding models lies in on-chain ownership, fostering direct relationships between builders and supporters. To combat fragmentation, integrating these blockchain funding models is critical for aligning incentives and enhancing community collaboration, ensuring resources flow to impactful initiatives.
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