Stakeholders analysis

Interested sides for this pilot project are:

1. Blockchains - Ethereum - Celo - Public Goods Network

3. Funding The Commons

4. BlockSplit

5. City

6. Residents

7. Allocation services - Gitcoin - Drip Network

Blockchains

1. More users
2. New, non-speculative, usecases / better PR for web3

More users

Probably the most valuable outcome of introducing QF in municipalities for blockchains is onboarding thousands, and eventually millions of new users from all walks of life.

How many new users could be onboarded this way? If we assume the average growth of participation of population as follows: - 10% of population in the initial QF round in an area - 50% increase in each of next 5 rounds, - plateau after that

(*) These assumptions need to be backed in a pilot.

then for different sized areas we can estimate:

How fast can we achieve these numbers of users?

If there where no technical or legal obstacles and all the rules were clear, we could run a new funding round each 3 months just like Gitcoin. That is enough time for previously funded projects to post updates and request additional funding if needed.

However, technical solutions are yet to be created. It’s possible that up to 80% of solution will be reusable in other cities and up to 70% in other countries. This means that implementation of the solution in a new city requires some changes and will probably mean that 1-3 months is needed to get the solution ready for use in a new city. On another hand, implementing the solution in a new country will probably be harder and might take 3-6 months. This is all assumming we have the cities sold on the idea.

The good thing is that we don’t need to do any special work for larger cities. Also, different cities can be onboarded in parallel.

What changes need to be implemented for a new city or country?

Besides getting access to the city government, the task that will probably take the most time is implementing the bylaws by the city. The local laws need to be observed and applied, procedures for making such decisions and new legislation have different steps in different countries and always take some time.

Another task that might take time when entering a new country is integration with local onramping service providers. Local onramps and centralised exchanges are embedded in the local legal and banking system, and have the experience of onboarding new users from local population. This makes them perfect partners for things like KYC and on and off ramps.

What’s the value of new users? It’s reasonable to question what’s the value of users that will only use their newly acquired blockchain account to participate in their local public goods funding. We can predict that this user base will have significant diversity, as their only connection will be the location where they are living. This means that there will be people of all ages, social statuses, profession, education, cultural, ethnic and other denominations. Hardly any existing web3 applications will benefit much from targeting this group of people.

However, this is a new set of users, and they have different needs. As we do more grant rounds in more and more cities, we will see this set growing to the point where it’s profitable to build apps for them alone. This would in turn generate more usecases for blockchain technology.

New usecases

A large portion of the usage of blockchains today falls into a speculative category. However, the whole idea of Ethereum is to serve for many different purposes.

It’s worth reminding that the only thing that’s common to all the new users is the city they live in. Because of this the first usecases that will make sense are them, besides donating for public goods are those that are part of their interaction with local government and between eachother: * Voting (starting with projects they donated to, and then broader) * Payments (utility bills, taxes, other city’s services, payments to other citizens…) * Signing (verifying identity, logging in public systems, signing documentation) * Bidding (the city already uses bidding for a lot of their services and real estate, the same could also be used for procuring services for creating public goods)

After this, it’s hard to predict the next usecases, but there will surely be many.

FTC

1. Proof of concept in a city
2. Reusable software stack

Funding the Commons is already sold on this project so there is no much need to explain these.

Proof of concept in a city

Reusable software stack

BlockSplit

1. Bigger local community
2. Become a web3 hub

BlockSplit team will provide organisational support for the most of the proejct’s activities. BlockSplit is a community event organised by local Croatian blockchain community.

We are more than willing to leverage our abilities, relationships and public recognition for pushing the development and use of web3 technology in the real world.

Bigger local community

This project has a potential to create opportunities for local individuals and businesses to not only use web3 technology, but to contribute to it by solving problems and building tools.

Being at the center of what is happening will help local IT community be the first to learn of important problems and create solutions which could then grow into important public goods or viable businesses.

Become a web3 hub

BlockSplit conference grew out of a small blockchain meetup, and we are interested in evolving even more. One opportunity that we recognise now is our unique position to become a hub for development, implementation and testing web3 technology.

City

1. Increase the budget for new public goods
2. Improve decision making

Increase the budget

City’s budget comes from mostly limited sources. There is more public goods to be created than there is money to do so. This is why the city is interested in any possibility for getting more funding for public goods projects, especially if it’s not debt based.

Quadratic funding provides such an opportunity.

Improve decision making

If all the projects deserve to be realised and the resources to do so are limited, the best the government can do is prioritise projects better. From the city’s perspective, they are trading the part of discretion to prioritise the public projects to getting more funding for those projects. Not only do citizens contribute financially to the budget, but their contributions provide a good indication of what should be prioritised.

If this proves to be an effective solution to the current proces of prioritising, it could free up resources for other areas that need decision making.

Residents

1. More liveable city
2. More value for paid taxes

More liveable city

More value for paid taxes

Gitcoin

1. More users
2. More funds allocated

More users

More funds allocated