Introduction

Ethereum, Web3, and the Internet as a whole require more sustainable mechanisms for funding non-commercial projects, open-source software, protocol upgrades, and other initiatives that don't prioritize revenue maximization.

Sustainability must be embedded into the systems and protocols we build and use daily. We can design appropriate incentives and feedback loops, integrating these mechanisms into processes and actions where they're easy to implement.

The equation of Sustainable Public Goods Funding hinges on efficient capital provision and allocation.

<aside> 💡 Capital provision is an active process that demands effective mechanisms and incentives to channel value into the crucial second phase—capital allocation.

</aside>

The DeFi space has largely been disconnected from regenerative models (ReFi) and use cases like impact and public goods funding. We need to bridge this gap and align incentives in a way that benefits both individual users and impactful projects.

Octant aims to connect DeFi protocols with funding mechanisms, creating a holistic pipeline that streamlines revenue and yield to fund common goods of specific projects within Ethereum (such as L2s) and the ecosystem as a whole.

Background & Challenges

• Public goods funding and socially impactful ventures need more sustainable funding mechanisms. Certain financial instruments and processes can function in a way that they generate extra capital or "spillovers" to fund projects such as public goods.
  • Currently, these mechanisms are either inefficient, nonexistent or limited to narrowly-defined ecosystems, both within the crypto space and beyond.
  • Solving the problem of sustainable public goods funding requires robust mechanism design solutions that projects can depend on. While Octant has begun to explore this with staking rewards, it has the potential to delve much deeper by incorporating additional capital sources.
    • Crypto offers various methods for sustainable value generation, such as ETH staking, yield in DeFi protocols, L2 sequencers, MEV capturing etc.
• Web3 funding platforms lack the flexibility in sourcing their capital and generating it from multiple sources on a technical level.
  • This protocol will enable Octant to create additional capital sources through various mechanisms, enhancing flexibility and sustainability.

Vision

<aside> 🐲

Serve as a community vehicle to efficiently capture & deploy capital to impactful ventures, through incentivized user participation, to fund the growth of the Ethereum ecosystem and beyond

</aside>

Goal 1

• Create an appealing, incentive-compatible funding protocol that enables projects with significant capital to depoly and stream value flows to be efficiently allocated to impactful projects within their ecosystems.

Goal 2

• Create an incentive system that motivates recipients/beneficiaries, as well as allocators, to continuously attract new capital to their allocation pool.

Goal 3

• Create a mechanism that consistently rewards Dragon communities for their participation in funding the governance and distribution of capital.

Octant App