SotN #47 - Gitcoin DAO & $GTC token, with Kevin Owocki

Transcript

hey bankless nation here another episode of state of the nation this is the time of the week where we talk about what's happening we've related to big picture stuff the themes of the bankless newsletter and podcast we try to drop some insights and action items for you coming in hot today super excited about this git coin doubt just launched uh the gtc token just launched if you've ever given to get coin you may be a recipient of gtc we are talking kevin owaki who is the founder of git coin and responsible for helping to launch this dow today super excited about it david are you excited man oh my gosh absolutely and i think there's no one more on the forefront of

thinking about why dao's why digital organizations than kevin owaki and that's why i'm really excited to get him on the show today because we cannot we can talk about uh you know simple all the basic reasons that everyone hears over and over and over again about why dows are good and those are all real but when we take them in and think about them at more abstract more satellite level views uh things get really interesting and kevin is a great person to talk to uh about that and and so i'm really excited to get that conversation going here on the state of the nation so we are going to be talking about the bitcoin dow launch solving the public goods funding problem not just for ethereum not just for crypto but i think even larger than that uh we're also

going to be talking about the future of work in the future you may be working for a doubt if you're not already not a company super exciting topics uh and i think themes of the bankless podcast newsletter writ large david before we get in with kevin uh we should talk about some announcements we dropped an mev podcast this week on on monday it's big brain books distill it down for us why should folks tune in to that and download that episode and give it a listen yeah uh mev is the hard problem of crypto it is the thing that could really just compromise a lot of the reasons why we think crypto is cool uh mev is the problem that if you are the person proposing a block

either as a bitcoin miner or an ethereum validator you have god mode over that block and that really sets you apart as an entity away from the rest of the network and there's a discrepancy between the values of the network and the the interest of that one individual person and this can really send these systems into haywire mode it can really destabilize these systems and so phil diane georgia's constantinopolis and charlie noyes are really at the forefront of thinking about this subject and we had a fantastic conversation the first conversation that all three of them have been in a room together uh and things go from the very concrete to the very philosophical at the very end because uh like many of these things that we touch in crypto things kind of

end with philosophy and and really big thinking uh and so we uh really really appreciated that conversation and really glad we could get that out and like you said ryan on the intro that podcast i think that is the first of many mev shows that we must do on the bankless program it was uh it probably the first of many listens too i just listened to it for a second time this morning just finished it so i could let these these topics really digest but super important we also have a liquidy ama ask me anything liquidy is an algorithmic stablecoin stablecoin as the definition that bankless would use which means it's not backed by a meat space bank or institution we're having them on for a

live stream ask me anything tomorrow at 12 eastern i believe david anything you want to say about that yeah i used the liquidy uh project as an example in my coindesk talk yesterday as one of these big pro like new brand new d5 protocols that have come out very recently that is all about capital efficiency capital efficiency capital efficiency right uh ether as a collateral asset inside of liquidity is a 110 uh collateralization ratio so really really low uh and also zero percent interest and that is the competitive advantage behind liquidy uh and really if you view defy at a bird's eye view it's just competition for capital efficiency and liquidity is one of the newest protocols to engage in that

competition so we got uh robert uh uh i don't know how to pronounce his last name uh like like how uh to get robert l uh robert l number two robert compound uh he's coming on to answer all of our questions about liquidy and how it works it's gonna be hot guys that is why you subscribe to bankless on youtube you subscribe in the podcast that's the way you get this alpha uh speaking of which arbitrage next tuesday they're coming on state of the nation and i've just heard from them they still plan to to launch on may 28th so i'm super excited about that david arbitram of course is a highly anticipated roll-up tech scalability solution for ethereum so we're going to talk to them next tuesday

another reason to subscribe to the bankless podcast but david i'm gonna start this episode with the question i ask you every single state of the nation that we've done so far which is this what is the state of the nation today sir the state of the nation is slaying and we could not do that with anyone else other than kevin olwaki we are slaying moloch that is really the through line for me what git coin is trying to do it's trying to slay moloch and if you are privy to the molot conversation you know that he's the god of coordination failure and the thing that gitcoin is trying to do the most is allow humans to coordinate and you might also know that it's actually impossible to slay moloch but you can wound him and make him retreat

and so that is what we are trying to do this week on the bankless state of the nation we are slaying moloch once again oh my god can we solve the tragedy of the commons problem can we figure out how to give to public goods that is the topic for today i'm super excited about that guys we're going to be back with kevin in just a minute but before we do we want to tell you about the fantastic sponsors who make bankless possible ave is a borrowing and lending protocol on ethereum and just recently released ave version 2 which has a ton of cool new features that makes using ave even more powerful with ave you can leverage the full power of d5 money legos yield and composability all in one application

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all right guys we are back with kevin owaki who is the benevolent dictator over at gitcoin which is a platform to help fund public goods and open source software of course bankless got its start there as well he's also a general in the war against moloch the god of human coordination failure and he's helping us slay human coordination failure through get coin kevin welcome once again to bankless how are you doing again today on this glorious launch day for get coin hey ryan hey david thanks so much for having me things are good uh we released gtc which is the token the government's token of

a network has economic coordinate git coin dao which will be a dow that generates public goods funding experiments matures them and eventually sends them out into the world to slay moloch so things are good we brought the site down a little bit with our record fulls of traffic this morning but we got it back up and feeling pretty good about that now you definitely got hugged to death this morning for a while and it is this like is this like record traffic for uh for get coin and the website yeah um we had about 2 000 users on the site this morning when it was going down and during the our record during a git coin grants around has been like 800 or 900 people on the site so number go up with website traffic

that's awesome i think it's only up from here let's start with this kevin for for folks that aren't actually familiar with git coin maybe this is their first time hearing about git coin why git coin why does it exist what's the purpose for sure so get coin is a place that you can get coins if you're a software developer working on open source software open source creates 500 billion dollars per year in economic value when i start a startup i don't write my own database server i don't write my own web server i don't write my own open source financial system i use ethereum i use nginx i use postgres these are open source technologies that allow people to stand on the shoulders of giants when they're starting new uh new ventures and one of the problems is

that there's no business model for open source software it's open source and it's available for free so why pay for it and it's get coins mission to make sure that we can create business models for open source software after all we have programmable money if we could program our values into our money and if we valued open source software then we can get open source software developers paid they can get coins they can quit their corporate job and they can just work on our digital infrastructure and that's our mission you guys have been crushing that mission so far this is uh some of the results can you can you walk us through some of the results that uh that you've seen so far with getcoin totally yeah so um bitcoin.com results is our results page and it updates every three hours looks like the last update

as of right here is a minute ago we've done about 20 million dollars worth of open source funding depending on when you uh it's a volatile cryptocurrency as you know uh i think it's between 19 and 20 million dollars right now um doing about six million dollars per quarter as of the last quarter but q2 is not over yet and get coin grants which is when we move the most money to open source software developers starts in about two weeks so expecting to do a couple million dollars per quarter and you know the big metric for us is how many software developers can quit their jobs and just work for the open internet and so at 20 million dollars there's been about a dozen or uh or more software developers that have told told us that they found their next

gig or their next opportunity for get coins so super proud of that it's been a theme on the bank list program to really talk about the ways that these uh protocols are disintermediating uh people from money and people from other people and really at the end of the day uh changing the technology and changing the money of a society is really changing almost everything there is about money and so what i really see get coin doing when we see these metrics of you know 3 000 per hour being streamed out to open source developers we are really the net result is we are changing the culture of work we are changing what work is uh and to me that is really the through line for get coin it's it's a cultural change platform for you know

instead of having a nine to five paper pushing job where you go in and you look busy and you do maybe two and a half hours of work while you're there for eight hours uh instead uh it's there's more something closer to you know more fluid work you choose what you work on uh you choose when you work and you choose how you value your work and and your relationship to that and i really see git coin pioneering that path um kevin do you what i know you have thoughts on this uh where does your mind go when you think about culture work and get coin sure yeah i mean the analog that i always use when i tell people about blockchain they ask what is blockchain i don't answer that question i say why blockchain and i say the internet of information changed the world because

now computers could send information across a computer network and it changed everything in society that relies on information entertainment media politics journalism and so i think we have the internet of value and now we can send value across the computer network and the allegory is that that's going to change everything in society that relies on value transfer whether that's banking insurance investment is in jobs i think is the really the one that people miss because we're all so busy i mean defy is amazing don't get me wrong but you want ethereum to go mainstream you got to hit people where they're at and for 95 of the world's population their financial lives is their jobs and not their investments and so i'm super passionate about okay we're moving forward into this world how do we make it as good for

talent as possible how do we optimize not just for in in the terms of economics how do we optimize for for the labor and not just for the capital and i think that the way that you do that is you provide new learning opportunities new opportunities to level up to the the world's labor and software engineers is just a logical place to start because software engineers are going to be able to figure out what a nonce is and how to broadcast a transaction on metamask but hopefully we'll create a better world for the world's workers expanding out from what we learned with software engineers to to communities across the world and i don't take that lightly i think that this is a really important part of people's lives and we're not going back to the world that used to exist but we can create a

better world for them and so for me i think one of the real things about ethereum that's pretty cool is removing from the industrial age when there was a lot of hierarchy in the organizations that we were involved with and now we're moving to a network stage where the everyday average participant can uh can can work for the open internet and can work for the network and one of the cool things about that is like imagine a mesh network of jobs where i can work for david one day and bank list the next day and then i can go work for the open internet after that and so a mesh network of jobs where we're all working with each other peer to peer instead of working for a boss who works for their boss who works for their boss is i think where we're gonna go and the last thing

that i'll say is just that there's a lot of jobs that needs to be reinvented there's there's compliance there's insurance there's retirement that's bundled with jobs and we're just at the starting line for how people are going to earn in the 21st century i'm really excited to be pushing this forward along with other great projects in the ethereum ecosystem like opolis like radical like common stack that are trying to create a better world for the world's labor not just for capital kevin there's a line in the cypherpunk manifesto that says cypherpunks know that cryptographic protocols make social structures uh is it too generous to say that git coin is a cypherpunk platform that coordinates funding towards other

cypherpunk platforms and to me the evolution of the cypherpunks is that you know they may they made early cryptography and then that made bitcoin and then and then that made ethereum and the cool thing about ethereum and also the cool thing about git coin is that the cipher the cryptographic side of things has kind of been taken care of and now we can do other cypherpunk stuff that's not necessary about cryptography but still of the cypherpunk ethos and and my my mental model for getcoin is that it's a cypherplunk cypherpunk platform that funds other cypherpunk things um ryan started the bankless newsletter and got his first uh you know donations from from get coin i started just writing about stuff writing about the things

that i saw in defy and i got my first funding out out of bitcoin as well and so kind of both ryan and i are graduates of the git coin platform and neither of us know how to code but yet i still think we are kind of promoting cypherpunk values um how do you think about bitcoin in the inside of that context um well i've read the cypherpunk manifesto i said i think it's certainly interesting um i do think that the mainstream is going to be a little bit maybe turn not turned off but like i don't know i don't i don't know if i see the word cypherpunk going mainstream i think open source software has already gone mainstream and so um i love ethereum i think cypherpunk values are really interesting to think about as we go into

this new world but i'm an open source maximalist and i think that open source software is just the bee's knees it produces so much value for the world and i think that i'm i'm an open source maximalist and i want to see open source software developers getting paid there is a natural overlap with cypherpunk values and with ethereum values there but i would say that i'm an open source maximus more than anything all right so kevin uh take us into get coined out so we've talked about why get coin as an organization exists funding public goods uh now you are choosing to and bitcoin is choosing to decentralize itself so no longer kevin the benevolent dictator just a member of a digital organization a dow as as people call them before

let's talk about this and uh i'm going to open up the the welcome to quadratic lands interface for you because that that's a great place to start as you talk about this but why a bitcoin dow totally yeah so i mean i've uh i so so this is the quadratic lands this is the promised land that we want to bring everyone to memetically we're trying to meme ourselves into the quadratic lands which is just a world where there's more digital democracy and public goods are funding there's unicorns there you can see it on screen so so basically what we want to do is we want to create a better world for the world's workers and the quadratic lands

is this mythical pro uh mythical place that we want to go to it's the earth it's it's the promised land where public goods are well funded and digital democracy reigns and i think that you know that's the economic way of of describing it but imagine a world where we could rewrite the rules of economic gravity uh in order to favor the common person and and and we could build a world in which there is serendipity serendipity just being defined as chance luck for the everyday person whether that's economic luck or social luck a world where we're all supporting each other because we now have programmable money and we can rewrite the laws of economic gravity to build programmable money and as we were thinking about how do we mean this into existence how do we build this

world we just didn't feel like a company was the right opportunity to do this if we're going to eat the ethereum dog food then we felt a dow was a better vessel for the quadratic lands than a company could ever be and i'll just share a little bit of a personal experience for me i think that you know companies are vessels for entrepreneurism and dowser vessels for activism um i have been an entrepreneur for the last 12 years and i've run companies before that have raised vc capital and then the bankers are leaning on me to extract from the users and get as much value out of them as possible so that they can return funds for their lp their lps and i just don't want to be doing that with my life my community at gitcoin are some of my best friends and i have a deep reverence for

them and i felt like there was no way that we could align in incentives without making it so that git coin was serving the community and governed by the by the same community so if i'm a manager of a of a startup i might have my users on my right and my investors on my right on my left and my investors are saying hey get as much money out of these users as possible and i didn't want to be in that position i wanted the users of bitcoin to be the governors of bitcoin and so anyone who's building bitcoin now is just focused on what's good for the end user and so that's the main reason why we wanted to um push into a dow the other little anecdote that i'll just share is that people talk a lot about the decentralization of power and i've just been through a

brutal two-year bear market in the ethereum space and i'm excited about the decentralization of stress i don't think that's for the bitcoin mission anymore i want the world to be able to carry this forward and i want it to be anti-fragile uh and like you know i'm not going anywhere i'm so dedicated to this mission but i you know i i want to i i don't want to be the single point of failure anti-fragility is a really important part of these missions and these networks and if i'm the ceo um i like to say philosopher king not benevolent dictator by the way you know uh but but i do think that um over time i would like to have these same privileges as everyone else in the network and that's a part of decentralization that's a part of the

ethos and so we're really trying to uh not just to walk uh talk to talk but to walk to walk the walk and become a doubt kevin you said you want the same privileges as everyone else in the network and that's a little bit of a coder speak or computer science speak coming out there because i think the what you may be alluding to is that literally privileges as according to the the protocol right like if you on a computer on a pc you have different levels of privileges if you have admin access or not right and one of the the keys of uh this industry is that everyone has equal access towards ethereum there are there is no you know there is no admin access to ethereum there everyone has equal privileges and i think what you're saying is that you

know with this hierarchy of companies where you know bosses boss our bosses are stacked upon bosses are stacked upon boxes bosses right you know not in my pay grade right no there is just one pay grade right it's just everyone's on the same flat topological map uh and i really like this chart that you put in in your announcement uh post where you talk about how when in web 2 it hits the limits of scale sooner than in web 3 world or a dow world and also that limit limits of scale turns into an extraction model rather than what i see you calling here an enabling model uh and this is again what what i was going to back to say to say earlier this is really just fundamentally changing the culture of the way

the world works right like there's just the alignment of incentives allows for things to just be net beneficial to everyone because we have that compressed hierarchy into a topological distributed map um kevin i see you as a leader in that charge and uh i really enjoy all these conversations of this nature that we have but i also know that the listeners are itching to hear about uh the gtc token and the nature of how it got distributed because now people who are our previous users of the web 2 version of bitcoin are now the governors of the web 3 version of git coin so can we can we talk about how uh

gtc was elected to be distributed to all the current uh stakeholders of gtc token totally uh well gtc stands for grow the community or git coin if you want to be conventional and basically the idea here was that i kind of think of where we're at now as the midpoint in the bitcoin journey we've built the coordination mechanisms we've built a platform and um about half of the tokens are going to uh going to myself and get coins investors and then uh also through a retroactive airdrop to people who have funded public goods on the platform in the past and you know that's no mistake we think that if you funded bitcoin grants then your values

are aligned with bitcoin and you've not only said that your values are aligned with bitcoin you've showed us that your values are aligned with bitcoin by taking your money and putting it where your mouth is and and so uh this is the halfway point in the bitcoin journey half of the tokens have been uh released to stakeholders who have pushed bitcoin to where it is in the past and half will be pushed in the as a community treasury to people who are helping to grow the network in the future and so there's a treasury of 50 million gtc that are sitting in a compound fork that the community can make proposals and anyone who's providing value to open source software and to get coin that is approved by our on-chain governance uh

the dials on chain governance can get rewarded in gtc in future governance rights for their providing value to the network so uh if you go to quadraticlands.com then you'll be taken to the token distribution experience and that's just basically this this this beautiful experience that that we've built for everyone in order to get their tokens um you have an airdrop most likely oh right video went off one sec uh-oh you have an airdrop most likely if you've contributed to bitcoin grants for hackathons in the past and basically what we're asking you to do is to do a proof of knowledge so watch a two-minute video about how uh about bitcoin's mission you can't govern bitcoin without understanding our

mission so you do a proof of knowledge and then you do a proof of use which is basically figuring out who in the community you want to delegate your tokens to and then and only then do you go to proof of receive which which is when you actually get your tokens and it looks like from the browser you're showing me here it looks like you've received your tokens so i have i went through this process so bankruptcy i went through this process it was uh it was super seamless and also super fun like it it very much felt like i was a part of of something uh much bigger than myself by the way my compliments on the video kevin um whoever put that together just did a fantastic job and um yeah and you know uh getting the tokens proof of knowledge the proof of use i actually delegated my

tokens to a member of the community that uh that i trust for voting i might get more involved in governance as it goes but the process was less fun and like i am super excited to see what this community does because i think the the the process of distribution here you've very successfully screened for people who are very invested in public goods uh on ethereum and um you know i just seeing what other doubts have accomplished when they have that highly engaged invested community i'm just super excited to see where git coin takes us well ryan if you don't mind i'd just love to double click on proof of use which is this second edition right

here um i don't know if you can click on it but if not if you go to mission use um in the url bar uh basically what we're doing is we're asking people to delegate their governance rights to members of the ethereum community if you click i am ready right there you'll see what i mean uh so delegation mode is enabled it looks like and then if you click continue then you're gonna see 40 members of the bitcoin community who would like you to delegate your governance rights to them in the uh in the process and so this is actually a really super essential point most on-chain governance systems launch a governance token and they have really low voter turnout and i just think that the consent of the governed is the only

legitimate uh frame it's the only legitimate foundation for governance and if you have low voter turnout then how the heck are you gonna govern uh have the consent of the governed and so basically what we're doing is we're setting the starting conditions of bitcoin dow such that everyone has delegated um and therefore we're gonna have much higher participation this is the theory at least by the way um if everyone's delegated at the start then we're gonna have much higher participation because 95 of people aren't going to follow all the debates on the governance forum but if they can delegate through liquid democracy to someone who is then you still retain the consent of the governed and the high voter turnout and i think that you know we're all standing on the shoulders of of giants with open source software just very

very minimally pushing forward the state of the art around decentralization i hope that this is getcoin's contribution to the space is 100 delegation at the start just means that you're going to have way better voter engagement and turnout in the future of the dow because the starting conditions were set that way so that's that's the hope and the theory with proof of use and by the way guys this is of course fully permissionless so anyone can become a delegate uh so you can paste your own address in here you could rise up the ranks and get people to to vote for you that's super exciting one other thing that we got to talk about because we we started this uh when you're talking about the git coin dials sailing off to setting off to quadratic lands right and i noticed on the quadratic lands uh home page there there

was is this notion uh of implementing quadratic voting as well can you talk briefly about that because that would be a a really innovative concept that maybe get coin dow is uniquely positioned to pull off so talk about what that is for folks who don't understand why it's important and and how the might be able to pull that off sure so this gets in a little bit into theory but um basically there's this thing called the matthew effect which is the uh compounding gains of accumulated capital and it applies to matters of of of money but it also applies to applies to matters of like fame or status like the rich get richer is basically the

matthew effect and there's this economist called glenn weil who invented a method of mechanism a mechanism for voting that basically optimizes for what the poor and the many want to see happen not just the rich and the few this is a big part of the ethos of decentralization is what are the what what was the most democratic way that we could fund public goods bitcoin grants is famous for quadratic funding um and one of the things that we are interested in doing in bitcoin dow at the governance layer is making it so that the people who have the most tokens don't have the loudest voice so the poor and the many over the rich and the few is the ethos of quadratic funding and what if we could bring quadratic voting to the base layer of get coin dao and so

there's actually an an active proposal that's being submitted in the next couple days i'm told that uh is coming bottoms up from the community to fork the governance of bitcoin dow and to make it into quadratic voting instead of one-to-one token voting and i think that you know i said proof of use is our one real contribution into moving governance in the space forward i hope the quadratic well i i should say that i i am trying to withhold my putting my finger on the scale too much because i want to see as much happen bottoms up from the community as possible but i do think that quadratic funding and voting is uh from my perception a part of the ethos of bitcoin and being the first dow that has quadratic voting at the base layer would be a major contribution forward because one-to-one token voting can be

captured by the rich people and i think that bitcoin wouldn't be bitcoin without the ethos of quadratic voting and quadratic funding in the base layer so i'm i'm keen to see how that governance vote plays out over the next several several months and kevin if that goes through if that's implemented what would that mean so there are obviously uh some in the git coin dow community who have more tokens than others there there are some quote unquote whales what that what would that mean uh for kind of the whales versus the the everyman with the with the smaller a set of uh tokens well it means that my voting will be way less influential and i think that that's a feature not a bug as networks decentralized you want to give tokens or you want to give uh voting power from

people who are just there early to people who are showing up and and contributing their sweat equity into the dow and so i think it's a feature not a bug that the whales don't have as much voting power and basically what you're gonna see is that everyday citizens who just verify their identity as a unique human are gonna uh in mass in aggregate have way more voting power and that could sway the dow towards more democratic making optimizing for what are the masses of people want to see as opposed to the richest holders and so that's the theory um we've seen it kind of in practice in quadratic funding and quadratic voting are the same thing it's just one is with votes and one one is with funding for those of you who have followed bitcoin

grants in the past you may know that uh the projects that are funded on bitcoin are the ones that our peers are the ones that respect them are it's not some central grant administrator who's deciding which projects get funded on bitcoin grants it's do you have the respect of your peers and how many of your peers respect your project and and i think that taking that exact same concept and applying it to governance would be a real uh interesting development in the space so uh it hasn't been done before but i'm curious to see what happens when it when it has been done guys i just want to make a big comment here because this level of experimentation is what excites me so much about ethereum so so kevin started this by saying hey we've moved from the industrial revolution

to the this whole network revolution where we're all part of networks right and but but we're stuck in the past where we have a capital structure that's based in the industrial revolution where my mind goes to exactly what you said what if uber had a similar mechanism right what if rather than issue it to issue uh uber tokens to to vcs and all of their shareholders they issued it to actual drivers in their network and they empowered those drivers with stake to do some level of quadratic funding like how much differently would the uber network look if uh this this level of experimentation was available for them so this is why this is such an exciting unlock uh to me and i i i can't wait to see how this plays out anyway david you

were going to tie something off i think well i just want to interject real quick there like we we've talked about get coin being a talent marketplace in the past and um i really think that uber has squeezed their drivers in a way that's not fair um they get them to buy these these cars and then their their earnings have gone down over time and um the gig economy is not the internet of jobs uh i think the internet of jobs needs to be more democratic and more favorable to labor not just to capital and so i would reject uber as a primer uh for what for what bitcoin's doing in just saying that the capital structure of dows is going to be owned by their workers and or governed by their workers i should say and so i think that that's the big difference between the internet

of value and the gate economy or at least i hope it is well said and the the way that get coin dow is is launching i think will uh or because this uh delegation right off the bat i think is really important because there is this inevitable tension between centralization and efficiency and decentralization and and fairness right uh and you know people people have it hammered into their brains into the in this industry like decentralization good decentralization good uh but if you really take decentralization to its logical conclusion you end up at the heat death of the universe right like at some point there's too much entropy like we have to we have to centralize decision making back into a distributed group of people but we can't just have maximum decentralization at the start uh

and then that that model along with launching with uh quadratic governance i think i think that is hopefully could be a model for for things to come kevin i want to tie off the distribution uh because we talked about um the ovens of which i believe there's a hundred million fifteen percent got airdropped retroactively to get coin participants and one of the measures of how you guys uh retroactively retroactively airdrop the uh the governance token is what you call gross marketplace value how do you come up with a gross marketplace value what is that totally so gross marketplace value is a web 2 for a web 2 term and it just basically means that how much money is passed through the network how much money was to get to open source software developers and if

you go to get coin.com results you see that 19 million dollars worth of value has been provided to open source software developers through bitcoin and so basically what we're doing there is we're just taking uh of that 19 million dollars we are uh taking we're doing for the retroactive distribution we're taking 50 for the sender of that money and 50 of the receiver of that money and applying a pro rata distribution according to who has funded the most open source software in on a per dollar basis and so basically that's the retractive distribution strategy is that if you funded public goods on get coin in the past you have more governance rights over bitcoin regardless of whether

you're the sender or the receiver of that transaction and so this is a a very awesome anti-civil mechanism to have whereas you know some people got like the uni-swap airdrop like 20 times right even though it wasn't really the intention but it was just like it's just the way that it was the nice thing about the git coin airdrop is that it's actually not linked to a private key it's linked to your github account uh and so you won't no one will be going and scrounging around for private keys to go find uh to find their their git coin uh airdrop the the other uh categories i want to want to talk about are the stakeholders and and the investors uh so who are are there any vcs or or capital venture capital funds that uh own some of these uh some of the gtc distributions and and what are their

investing schedules look like can you share some of those those details as well yeah i'm actually reminded that we need to write a post about this still and so i want people to hold me to that that we're going to be as transparent about how the company exists as long as the company exists and i think that the long-term vessel for this will be the dow but the company is what got its off got it off the ground so um i started get coin in my basement in 2017 um i'm back in my basement because of coronavirus and um and basically uh the first money into bitcoin was joe lubin and uh consensus they took us from a project that no one was using to a project that metamask from the ethereum foundation was using and they put about five million dollars into bitcoin um we

spent that bull market in the bear market at consensus and then raised 11 million dollars from paradigm in january of this january february of this year and so basically the distribution to the stakeholders in the company are primarily paradigm and consensus and uh we were very very clear that our mission is funding open source software and we turned down a lot of term sheets from people that we thought were not going to be mission aligned and so um i want people to hold us to that mission alignment and community alignment over the long term uh at the same time it was important to get capital in the bank to get bitcoin off the ground and so that's why those those uh those parties do have a distribution

of of gtc along with myself and in the bitcoin team but uh like i said the the mission alignment and the uh the mission and community alignment is the super is the most important thing and so about a third of the token table is going to is going to people who have gotten us to where we are at this point and we're seeing two-thirds that it's going to be distributed to the community in the future so uh that's that's about where things are landed and hold me to doing a blog post about this in the future as a as a bitcoin governor yes yes i will um one last comment i want to touch on before we hit our sponsor break and get into uh more more brainy parts of these conversations uh you you mentioned how there's 50 percent of gcc meant for

the future of bitcoin and put into the bitcoin dow treasury and also 50 of uh for the past can you just talk a little bit more about why that 50 50 future past distribution makes made sense to you yeah it just kind of felt like we were in the middle point of of our journey and about to move into the end game of bitcoin which is to build a dial of dowels that generates public goods funding experiments matures them and then eventually decentralizes them so we're solving for the generator function of public goods funding by the way like bitcoin grants and bitcoin hackathons are just child of this main dial which is producing new means of funding public goods um and so like that's the end game uh just kind of felt middle point with with bitcoin getting off the ground being a brand

people knew and entrusted and are eventually decentralization and moving into that end game and so um 50 has gone to people who have funded on the platform or who have invested in the company either in their time or in their labor in the past and then 50 is going to go to people that subject to governance are contributing to get coins uh further decentralization and impact on the world so we've got uh some community work streams that have been proposed one is around decentralizing bitcoin so um hand to god we're [Music] now we're a centralized platform i have the identities of the platform it's working is designed to get the

technology out of my hands and in an incredibly neutral environment on to host it on like ipfs or something so decentralized bitcoin is number one um austin griffith and i uh and the getcoindell have partnered to come up with a public goods funding prototyping workstream which is basically just launching new apps that can fund public goods that could be funded by git coindow and other dials in the space we've got a public goods funding work stream which is just basically about coordinating the funders league the people who fund uh work on on on bitcoin grants and and then we've got a governance work stream which is just basically you know it's the community organizing how they want to govern bitcoin ratifying bitcoin grants rounds is there going to be one of the first uses of the governance work stream bitcoin grants from 10 is coming

up in two and a half weeks uh we also received a pretty and by we i'm talking about the dow not the company received a pretty large donation of akita tokens uh that are worth several million dollars and so what do we spend those on uh is another matter that governance is gonna is gonna be handling so oh my god in the future is this all the dog coin stuff like is that where you're talking about that doggy took in donations yep yeah and uh i'm so happy that i don't have to make the decision about where they go i think dao can figure it out can you just talk about decentralizing stress right yeah like before we go to break can you talk about how crazy that was so like what happened with that so

git coin received a whole bunch of doggy tokens right yeah so vitalik went into his wallets and a bunch of these dog took i think she was the first put 50 of their network into vitalik's wallet and i think vitalik i i can't reason about his motives but he sent a bunch of sheep tokens to the india covid relief fund he sent millions of dollars worth of dog tokens to get coins uh to the community multisig for bitcoin this is before the dallas launch so there was no on-chain governance to send them to and so metallic i think was just kind of taking the the tokens that he'd received because of his clout and donating them to good causes and the book value of

those tokens was in the hundreds of millions of dollars nothing surprises me in crypto anymore but that surprised me a little bit to wake up to that happening a couple weeks ago hundreds of millions of dollars absolutely insane so it like now now post uh git coin dow basically that just goes to the dow treasury if anyone wants to to contribute to that um they can so if you get air drop doggy tokens you don't want them in your wallet you could send them to get coin treasury and now it's up to uh bitcoin gtc holders to essentially vote where those funds go or how to allocate them yep exactly we've got a uh tally.com is the voting interface that we're going to be using and bitcoin is a is a uniswap fork and

actually i think if i'm not mistaken bankless dial is the universal fork as well so we have the same governance mechanism we'll probably have to trade some tips about about governing dials in the future no i think we're all figuring this out as we go as the nature of the industry kevin there's a very awesome amount of very sick art behind you and that's what we're going to get into in the second half of this show because you have a comic book that you have been working on to go along with this release of git coin dao so that's where we're going next uh it's really sick i've already seen it so stay tuned for that but first guys we have to take a moment to talk about some of these fantastic sponsors that make this show possible bankless is proud to be supported by

unit swap uniswap is a new paradigm in asset exchange infrastructure instead of a cumbersome order book system where trades are matched with other humans unit swap is an autonomous piece of software on ethereum which is what ryan and i call a money robot no human counterparties or centralized intermediaries just autonomous code on ethereum input the token you want to sell and receive the token you want to buy something brand new in the uni-swap ecosystem is the uniswap grants program is now accepting applications for grants we have been saying this for a while and we'll say it again dows have money and they are in need of labor if you think that you have something to contribute to the uniswap dow apply for a grant to uniswap just look at the size of the

uniswap treasury it's almost three billion dollars this mountain of capital is looking for labor do you have something of value to contribute to the uniswap dal no matter how big or small your idea is you can apply for a uni grant at unigrants.org and help steer unit swap in the direction that you think it should go that's exactly what we did to get uniswap to be a sponsor for bankless and you can do the same for your project thank you uniswap for sponsoring bankless gemini is the world's most trusted cryptocurrency exchange i've been a customer of gemiini since i first got into crypto in 2017 and it's been my main exchange of choice to make my crypto buys and sells gemini is available in all 50 states and in over 50 countries worldwide and on gemini

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the root of a lot of suffering in the world and we were talking about how aetherium as a tool for coordination could be used to slay moloch and you know you can never kill a mole look you can never kill coordination failures we can at least set set molok back and we're trying to figure out how to tell that story in a format that wasn't a 40 page blog post or a two-hour bankless podcast episode by the way david i love the podcast we did but it's two hours long um and so we came up with this comic book which basically tells the story of the ethereum community assembling to fight moloch like a comic book basically like a marvel comic um you know i'm a big x-men fan i'm a big avengers fan and telling it in a format that's engaging and concise and gets the

information out there is i think one of the ways that we can we can help ethereum go mainstream so uh david your episode uh your podcast episode inspired this and so uh thank you for helping us give this to the world well the whole point of the podcast is of course to allow for surface area for people to condense the same things that they hear on the bankless podcast or on the on the bankless newsletter into smaller and smaller smaller you know packets of information as we all know memes are extremely important in this world and going from a two-hour podcast to a comic book is a very strong condensing of a lot of information and uh ryan if you keep on uh scrolling through this there's a there's a lot of like symbolism and metaphor here i particularly like this page which uh the

the page of the rabbling the rabbling individuals and to me i see uh the problem of dunbar's number right in the first two we have a family who argues but then they come together because they know everyone but as soon as dunbar's number which is for those that don't know dunbar is dumbar's number is the number of people that you can mentally account for with your relationships and as soon as you get beyond about 150 people coordination failure starts to occur right and there's there's fissures and as the groups grow larger and as society grows larger you see moloch just nebulously rising up out of the background i think that's really really cool uh and then and then going down even further uh this is the the oh yeah oh god this is so good just

jesus appears and starts to pull out the strings of all the people of the world because they can't figure out how to coordinate and i think my favorite page in this this comic book ryan if you keep on scrolling down is all of these individual separate little fighters separate little avengers my mind goes to all the individual uh grants grant recipients or or dows on ethereum or just entities that are all trying to figure out how to coordinate right we have the the yern dao we have you know we have the the sushi swap dao we have all these like on chain dowels and now we are also starting to tinker with off chain dowels and i kind of consider bankless dao as a part of this and get coin dao is a as kind of an off-chain dow as it's more

about coordinating not on smart contracts on ethereum but on values and culture and ethos chain right uh and the cool thing ab the cool metaphor i see is there's all these separate little you know uh bots individual little git bots uh and then if you keep on scrolling down ryan they all come together to uh to form the the eath ethbot right and that is ethereum like what is ethereum other than uh one more page ryan i think what is ethereum other than uh or just keep going there we go the ethbot uh what is ethereum other than just a collection of smaller entities right and what is the world other than just like you know you know neighborhoods communities forming neighborhoods forming counties forming states forming the nation state

forming through the globe right the more like surface area we can generate for coordination the more we can coordinate and that's kind of what i see as git coin and now git coin dow is surface area for coordination and coordination infrastructure um that that's why i think this comic book is so sick and i'm the other uh just awesome thing that that git coin is really doing in the world of ethereum is bringing in a lot of really sick art and meaning and memes and culture so not only are you guys a a platform for funding other things but also bringing in like a lot of really sick art and i think that's really important totally yeah i mean i'm just so passionate about this story and and um you know i don't know if anyone else is

a power rangers fan i plead guilty to that as well and just seeing using that as a metaphor for the ethereum community coming together and fighting coordination failures i really do believe that this technology is for more than just creating decentralized casinos i do believe that we can coordinate on a deeper level and that's what this comic book is is designed to do is to design to spread that word spread that word and and hope pill as many d gens as possible we want to take as many d gens as possible and show them the meaning of ethereum and make them into regens yeah so uh go ahead ron can we talk about that for for a minute kevin so there are a lot of folks listening who probably haven't heard the molok podcast which goes into this in like two hour form right but um this is

not just about solving like money lego problems on ethereum and creating a new bankless financial system that's certainly part of it right that that is a coordination problem that maybe we're solving first but if i look at these these bots there are all sorts of coordination failures like sprinkled throughout the the world that we live in in the 21st century right so talk about things like nuclear proliferation or talk about things like uh you know the coming artificial intelligence and issues that that rise as a result or we talk about uh pollution global warming all of these are tragedy of the commons moloch style uh problems and that really is the pitch for to the world of why ethereum right

is because we can start solving these basic human coordination problems is is is that right is like ethereum and is get coins hope and aspirations wider than even like decentralized finance and empowering software uh software develop engineers and empowering a new labor labor force can we how can we hope to solve these big problems and what's our message to the world for sure yeah i mean i think that like you know my favorite part of this is if you scroll up the page that has the ethereum logo um this this one at the bottom it says uh ethereum is the digital tool for coordinating information identity resource management markets reputation and

and i think that you know um i i want to eat a little bit of humble pie here and say that this is all potential energy the story is not written yet and coordination is a choke every day and you know it could devolve into just a decentralized casino and never be anything more than that but it's my hope that we have programmable money and it has so the whole problem with like by the way like i love america like i love uh like our national culture but like america only governs america and our court systems are really backed up right now um we now have a global coordination mechanism in which we can resolve disputes just using the ev like you think thirty dollars in gas for a

transaction is a lot like try having to fly out to new york to settle some dispute with someone and your court case keeps on getting delayed and you keep on having to travel back and forth like ethereum is a global coordination tool we can which can instantly arbitrate disputes anywhere across the world and so we now have this coordination substrate across the world um and for the last 20 years we've been able to communicate across the world but we haven't been able to build trust and coordination across the world with each other because our legal jurisdictions didn't cover disputes uh across worldwide and so i think that we have the raw materials to build this deep spot and to fight coordination failures on a global scale but we have to choose to coordinate still we still have to build it and the whole idea with bitcoin

is to better is to better coordinate it like that's why we're building a dial of dallas that funds public goods and helps us coordinate on a global scale like we have the talent we have the software developers we have the capital we have the tools to do it and now we just all have to choose to do it and we may choose to we may not it's up to us coordination is a choice every day it's super cool i love how this ends by the way it's just like the the ethbot just punching and like trapping moloch with the blockchain uh by the way yeah it's high so if you go to the last page um you'll you'll note that you can only set molok back you can never completely kill molok and so the last page with molok's eyes ominously in the background uh

you know it's possible that we could do a sequel where there's where there's a bankless bod and a clr fun bot and when i told amin about this podcast he was like he was like you should you should call the uh you should call the sequel molok and all the terrible sequels uh so i think we're gonna try to get a meme to be featured in the sequel as well since he's been a very big proliferator of the meme but um i would just remind us ryan that like yeah molekins are ethereum consent molok back but we'll never ever completely vanquish moloch it's just up to us to choose to coordinate and to set it back as much as possible but this is like the pursuit of of humanity right this this is how society has progressed throughout the ages is like scaling

trust basically and pursuing an optimistic view yeah i think so absolutely and that that's very much what our mev podcast was earlier this week is like how do we pursue the mev problem moloch across all of these chains uh super cool i mean at least for me this is this has become kind of the the reason for why i'm in crypto like which is much which is even broader than so i i thought for a time so when i first got into crypto i thought for a time i uh brief time i'm in crypto to get rich right like i thought that at first and i'm like no i'm actually in crypto for self-sovereign money and then that became like no i'm in crypto for a more more bankless money system for the world

right and like now it's even expanded beyond that i'm in crypto to solve to help solve to be a small part of uh solving human coordination failures and that is like such a broad lens and such an exciting lens this is the reason like i feel like i can spend my entire life here because like what else is there like what i mean there are there are other important things but like the the big problem that humanity faces if we want to scale our species if we want our our our children our grandkids to to live a a better more peaceful uh like life is solving human coordination failures like

that's how we scale civilization that's how we make the world a better place so it's really at least become for me kevin i think you've captured here in the comic book like the reason for why crypto and i start to see everything through this lens dude like all of the problems in the world i see through this lens now yeah i mean i will say that right now we're at this really tough point where industrial age capitalism is failing the institutions that our parents relied on are not serving our generation anymore and there's so many people that are just hopeless and dejected because they think it's all but now we have this information age and we have this new institution of ethereum and coordination that could create a better future for the humanity and so people are letting

go of that last monkey bar and you just have to tell them about that next monkey bar you have to you have to give them hope that these new institutions are going to be able to lay a foundation for their family and for the good of of their of their community and so i think that a lot of people are getting into crypto at start at the start to get rich but as david and i like to say crypto wasn't designed to make you rich crypto was designed to make you free and so you know if we can if we can populate that i know so many people by the way like myself included who just came into it and they thought they could make a quick buck but then they got hope killed by the culture and by the mission of a lot of these dowels and now they're in it

for the culture and they're in it for a better world and i think that's just part of the story arc uh crypto wasn't designed to make you rich crypto designed to make you free well the next steps in slaying moloch in the grand scheme of things is i think for uh the listeners the the 200 plus listeners watching this live stream and also the listeners on the podcast later is to go claim your gtc tokens and be a governor of the of the dao kevin what else should listeners and viewers do to help uh further get coin getting git coin dow and also to further slay moloch totally um we did a retractive distribution of 25 575 people i think but open source has touched the lives of

everyone out there and so if you didn't get a retroactive distribution you can go to gov.getcoin.com and figure out how to get involved and if you do so if you create value then maybe the community will reward you by letting you capture value by giving you a distribution of gtc it's not up to me it's up to the doubt um the other thing that you can do is that we created this comic book about the ethereum community versus bullock and you can get it on store.getcoin.com all proceeds will go to funding public goods and um also if you're not into uh comic books we've got unicorn socks everyone in the ethereum space seems to like unicorns and i'm very happy to be unicorn socks is a uh that'll make my anyone's ears pricks up how much do those cost uh so we're selling them on the store i

think for it comes in a swag box which is like 50 bucks so not 60 000 yeah not not 16 000 and if you find me at death finals give them to you for free my wife wants them out of the house at this point yeah i've got a sense of urgency to get them to move them um but yeah um yeah thank you so much for having me on it's been a real pleasure to talk about this and i hope that we can solve the the coordination failures of the world in the future together awesome kevin thank you so much thanks for sharing this with the bankless community i know you have a ton of bitcoin supporters many who are excited about getting into the git coin dao i'm i'm reminded uh david of josh rosenthal

that that episode we did on the crypto renaissance where he says to everyone what what is you know one piece of his three words of advice or three uh thoughts for us is go join adal go get involved in one of these things the git coin dao is doing fantastic work and if you're curious if you're interested don't spend much more time listening to podcasts and like reading social media go join it go do something that's how you get involved in this movement in this mechanism once again kevin thanks for all your work and thanks for stopping by public goods are good see you later yes they are guys action items of course go read the announcement post in the show notes claim your gtc start

participating in the dow as you're part of that initial drop if you're not contribute in other ways and you might be in the future also read kevin's article on coordination failures we will include that in the show notes that was something he published in bankless a couple weeks back of course as always guys risks and disclaimers eth is risky crypto is risky none of what you just heard was financial advice all this stuff is risky you could lose what you put in but we are headed west this is the frontier it's not for everyone but we're glad you're with us on the bankless journey thanks a lot tonight ryan really quick before we wrap can i add a disclaimer gtc is a governance token and it has no economic value don't buy it come on to get coin down and earn

it by working for the dow has no financial value thank you there you go thanks kevin bye guys hey we hope you enjoyed the video if you did head over to bankless hq right now to develop your crypto investing skills and learn how to free yourself from banks and gain your financial independence we recommend joining our daily newsletter podcast and community as a bankless premium subscriber to get the most out of your bankless experience you'll get access to our market analysis our alpha leaks and exclusive content and even the bankless token for airdrops raffles and unlocks if you're interested in crypto the bankless community is where you want to be click the link in the description to become a bankless

premium subscriber today also don't forget to subscribe to the channel for in-depth interviews with industry leaders ask me anythings and weekly roll ups where we summarize the week in crypto and other fantastic content thanks everyone for watching and on the journey as we build out the bankless nation