The Public Goods Network, a project developed by the team behind Gitcoin, has launched its testnet called OP Stack on July 7. This layer-2 blockchain network aims to allocate a significant portion of net sequencer fees to fund public goods rather than distributing them to token holders or developers.
The Public Goods Network is being built using the OP Stack, which positions it as a potential component of the proposed “Superchain” that includes Optimism and Base networks.
As an Optimistic layer-2 rollup of Ethereum, the Public Goods Network utilizes a profit-making centralized sequencer to batch transactions and periodically submit them to Ethereum. However, instead of allowing venture capital firms or others motivated by “rent seeking” to capture the value provided by layer-2s, the network plans to reinvest the majority of profit into public goods projects.
To achieve this, the sequencer fees will not be directed to Gitcoin directly but to an alliance formed based on a newly defined governance model. The long-term vision is to enable projects to receive funding directly from sequencer fees without intermediaries, using the EIP-6969 standard.
The current version of the Public Goods Network is connected to the Ethereum Sepolia network through an official bridge. This integration allows developers to test their applications using funds obtained from Sepolia’s various faucets.
Gitcoin, known for its use of quadratic funding to provide grants for open-source projects and public goods, gained prominence in the crypto space. Azeem Khan, Gitcoin’s Head of Impact, recently joined the advisory board for Foresight Ventures, a crypto fund.
With the launch of the OP Stack testnet, the Public Goods Network aims to establish a sustainable funding mechanism for open-source initiatives. By redirecting sequencer fees towards public goods, the network strives to support the growth and development of valuable projects while avoiding undue capture by external interests.
As the network progresses, it aspires to become an autonomous ecosystem where projects can receive direct funding through sequencer fees, empowering the open-source community and fostering innovation in the public goods space.
Overall, the Public Goods Network’s OP Stack testnet represents a significant step toward enabling sustainable funding for open-source endeavors and promoting the creation of public goods for the benefit of all.