The Citizens' House employs a unique approach called "retroactive public
goods funding" (RetroPGF), which believes it's easier to support what's
proven valuable rather than guessing what might be useful. Each RetroPGF
round begins with a defined funding scope, initially set by the Optimism
Foundation and later by the community. Projects are then evaluated by the
Citizens' House based on their impact within this scope, determining
funding allocations. Optimism is committed to dedicating 20% of its OP
token allocation to RetroPGF, and future rounds will tap into additional
funding sources. This iterative process blends theory, practice, and
community feedback to shape a retroactive funding system that benefits
all.
Experiment Overview
The Optimism Collective recently held its second round of Retroactive
Public Goods Funding (RetroPGF) in the first quarter of 2023. The
RetroPGF 2 allocation of 10 million OP tokens was directed towards
funding public goods that promote the development and usage of the OP
Stack. The ultimate goal of the Collective is to establish a global
system that rewards positive contributions with individual profit. The
RetroPGF mechanism serves as an experiment towards achieving this goal
of "impact = profit". By funding public
goods in a sustainable manner, the Collective can foster a thriving
ecosystem and a stronger economy. Overall, this initiative aims to
create a positive impact on the world. The Optimism Collective believes
that building public goods should be profitable.
Process and Timeline
This is the kick-off for the project nominations of the recently
announced RetroPGF Round 2. Optimism’s vision is to build a global
system where positive impact to the Collective is rewarded by profit to
the individual. RetroPGF is an experimental mechanism to realize this
goal of “impact = profit”. For more information, read the announcement
post or visit our governance documentation.
Badgeholder Selection
Badgeholders have the power to distribute OP tokens to projects.
They’re instrumental in running an effective RetroPGF round. For
RetroPGF Round 2, badgeholders were selected across four different
criteria.
Nominations
Anyone could nominate a project on the forum by providing a name, impact description and link to Github/Twitter.
Project Profile Creation
Projects had to create a profile where they were asked for general
information, as well as a description of their project and its
impact. Information provided by Projects can be viewed on the
archive page.
Voting
Badgeholders were provided with a badgeholder manual
and asked to evaluate and vote on nominated projects via a
voting form
Payout / Funding Distribution
Projects received rewards based on their received OP allocation
votes from each badgeholders which can be viewed here.
Scope of Round 2
RetroPGF Round 2 has a clear mission which is allocate 10 million OP
tokens to projects that enhance the development and utilization of the
OP Stack. These projects fall into three key categories:
Infrastructure & Dependencies
Software used to build or deploy the OP Stack / contributions to
protocols or standards upon which the OP Stack runs / experiments
that support future development of the core OP Stack protocol.
Tooling & Utilities
Work that helps builders create applications on Optimism mainnet,
build on the OP Stack, interact with governance of the Collective,
or use applications built on Optimism.
Education
Work to spread awareness and knowledge of how Optimism works,
whether technically or socially.
Nominate Projects
To nominate a project for RetroPGF, visit the designated forum posts for
your chosen nomination category:
What is things to consider when nominating a project?
Provide Impact Details
Describe how the project has made a positive impact within the scope
of this round
Choose the Right Category
Ensure that you nominate projects in the relevant category.
Avoid Duplicates
Check if the project has already been nominated to prevent
duplication.
For people or projects
Read the Project Manual
Familiarize yourself with the Project Manual, which provides an
overview of the process and answers frequently asked questions.
Opt-In and Create a Project Profile
To be eligible, opt into the round and complete your project profile
in the RetroPGF application manager by Feb 21. This profile should
include additional information about your project and verification
of your GitHub or Twitter account.
Stay Updated
Keep an eye out for the RetroPGF application manager, set to launch
by the end of January. More details will follow soon!
It's essential to clarify that the term "project" encompasses both
individual and group efforts. However, collections, referring to
projects without a single verifiable entity on GitHub or Twitter, can
only be nominated by the Optimism Foundation. Your participation is
valued as we continue to shape the future of RetroPGF.
Nominate Template
This is a nomination to recognize and celebrate the outstanding
contributions of a project within the OP Stack ecosystem. If you know of
a project that has significantly supported the development and usage of
the OP Stack, we encourage you to nominate it for recognition.
For people or projects
The projects name
A description of how the project has supported development and
usage of the OP Stack
A link to the project’s GitHub or Twitter
(Optional) Contact info for the project or project lead
For collections
The Foundation may also nominate collections for funding. A collection
is different from a project in that a collection may not have a single
entity that can be verified via GitHub or Twitter. Optimism’s Support
NERDs or the set of code contributors to the Optimism monorepo are
both examples of potential collections.
To nominate a collection, the Foundation must comment on a forum
thread with the collection’s name, the list of addresses in the
collection, the breakdown of how funding would be distributed across
those addresses, and a description of how they’ve provided public good
to the Collective.
Because of the high risk for fraud, collections will only be nominated
by the Foundation in this round of RetroPGF (Round 2).
Voting Badges
Selecting the right badgeholders is like building a dream team for
RetroPGF Round 2. We wanted a mix of experience, expertise, and fresh
perspectives to ensure a robust and effective round. Here's how we did
it
🎓
Round 1 Alumni
14 Badgeholders
🔴
Optimism Foundation's Picks
21 Badgeholders
🏛️
Token House Elections
10 Badgeholders
✨
Badgeholders Nominates
29 Badgeholders
Let deep dive more to detail across four different criteria:
Round 1 Alumni
We welcomed back 14 badgeholders who had previously participated in Round 1 of RetroPGF. Their experience and insights from the first round make
them valuable assets for Round 2.
Optimism Foundation's Picks
The Optimism Foundation had a say in selecting 21 badgeholders, each
bringing a unique perspective to the table. Their diverse
backgrounds and expertise contribute to a well-rounded group.
Optimism's Token House Elections
10 badgeholders were elected by Optimism's Token House , adding a democratic element to the selection process. One voting
badge will be given to 10 Token House delegates
Badgeholders Nominates
To ensure community representation, we opened up nominations for
badgeholders from the three categories mentioned above. This
approach allows us to include fresh voices and new perspectives in
our badgeholder team. Each of badgeholders will be able to
distribute a voting badge to one community member of their choosing.
Guideline Badgeholders that looking for:
Passion for Public Goods
We love advocates who believe in the value of public goods, not
just in crypto but in the broader world. If you're passionate
about the greater good, you're our kind of advocate!
Innovative Thinkers
Are you someone who can help us improve and refine retroPGF as a
funding mechanism? We're looking for creative minds who can
advance the process and structure to make it even better.
Domain Expertise
If you're an expert in any of the categories up for funding in
RetroPGF 2, we want to hear from you. Your expertise can be a
game-changer!
Alignment with Our Mission
We're on a mission to support the long-term growth of the Optimism
ecosystem and the Collective's mission. If you share our vision
and goals, you're a great fit for our team.
Things to aware
The information that badgeholders and citizens should know about the
RetroPGF's process and rules.
Holding a voting badge for one round does not guarantee voting
rights in subsequent rounds; Citizenship criteria may change in the
future.
Voting badges in RetroPGF 2 are recorded as a simple attestation in
the AttestationStation, not as a soulbound token, allowing for
flexibility in future iterations.
Badgeholders are expected to adhere to the Optimism Delegate Code of Conduct.
Accepting a voting badge is optional; if an eligible person
declines, the badge won't be distributed to someone else.
Badgeholders with any participation or ownership stake in a project
up for vote in RetroPGF 2 are expected not to vote in favor of that
project. Detailed conflict of interest rules will be provided in a
forthcoming Badgeholder Manual.
Getting a badge for RetroPGF 2 doesn't mean you're guaranteed
permanent participation in the Citizens' House or future RetroPGF
iterations. Our citizenship criteria may evolve over time. The
responsibility for citizenship distribution ultimately lies with
Optimism's two-house governance system.
Results
Retroactive Public Goods Funding (RetroPGF) fuels the growth of the
Optimism ecosystem by allocating capital to those who've contributed
positively. With hindsight, it identifies builders who've provided
public goods. This investment supercharges Optimism's tooling &
utilities, education, infrastructure & dependencies, making it a premier
crypto ecosystem. In the Optimism Collective, positive impact earns
rewards. RetroPGF Round 2, the second experiment, had 69 out of 71
selected badgeholders vote on allocating 10m OP to support OP Stack
usage and development.
📬
Nominated Projects
195
🌱
Projects Awarded Funding
195
🎉
Median Funding
22,825 OP
🔥
Top 10% of Projects received over
140,000 OP
Overview Allocation
In this second round of RetroPGF, 195 people and projects were nominated
for funding, and all 195 were awarded funding by the badgeholders! While
going above and beyond in assessing project impact these badgeholders
allocated their votes among 40 different projects on average. The
funding was evenly distributed by badgeholders across three categories
which are education, infrastructure, and tooling & utilities.
🏗️
Infrastructure & Dependencies
37.06%
3,706,329 OP
🛠️
Tooling & Utilities
32.29%
3,229,011 OP
🧑🏫
Educations
30.64%
3,064,659 OP
See the full list of all RetroPGF 2 recipients with details through archive page, or through the sheet
here.
Voting Rationale
While badgeholders are not obligated to reveal their voting choices,
some may choose to share their voting rationale here. This transparency
can provide valuable insights into the thought processes and
considerations that guided their decisions, fostering a deeper
understanding of the evaluation and allocation of Retroactive Public
Goods Funding in Round 2.
This is an example of a thoughtful and balanced voting rationale for
Retroactive Public Goods Funding (RetroPGF) Round 2:
My criteria is (1) impact (of course), (2) potential impact (is the
idea sound), (3) current funding status. I weigh these things in order
3, 2, 1. If a project has raised money (through either token or VC),
most likely I won’t be voting for that project. If a project has a
great idea but is just starting to see impact, I will vote for them
with the thinking that supporting a great idea is a good thing. And
hopefully the support will help that team to execute on the idea in
the future. (Yes, I know this is supposed to be retro-active, but see
below…) If a project has already had impact, I think that’s excellent
and deserves support, but many times early impactful things fade in
the long run. Use Yahoo as an example. It had a huge impact in the
early Internet, but it faded to insignificance. I’m not sure past
impact is a good measure. Also, there’s a winner-take-all aspect to
all of this. Everyone votes for “well known projects” and then “well
known projects” become more well known because they have a marketing
budget, spiral, spiral…
For these reasons, I think I’m going to do something similar to this.
Identify project that I won’t be voting for due to already existing
funding through VCs or token raises. Allocate 0% to those projects.
Identify the 10-20 projects that either have great future potention
and growing impact or past impact and a really good idea. Allocation
about 50% of my vote to those project split up in a way that makes
sense.
Use the remaining 50% of my vote to vote evenly across the remaining
projects in the belief that even 1% of my vote (or whatever it works
out to) is a significant amount of money, and especially for small
projects, any amount of money keeps them going and is a huge
encouragement.
If you're curious to learn more about how other badgeholders are
approaching their voting rotations, feel free to check out the
discussions on the governance forum. It's a great way to get insights from the community and see the
diverse strategies people are using!
Infrastructure & Dependencies
A total of 43 infrastructure projects received financial support.
Notably, the top three recipients in this category were Protocol Guild,
geth, and
Solidity, reflecting their pivotal roles in bolstering the infrastructure of
the Optimism ecosystem. This allocation of resources signifies a
strategic investment in the backbone of the platform, ensuring its
robustness and scalability.
There is a total of 82 projects within the Tooling & Utilities category
were recipients of funding during this phase. Notably, among these
recipients, OpenZeppelin,
DefiLlama, and
wagmi emerged as the top recipients in this category, demonstrating their significant
contributions to the ecosystem's development and functionality. This allocation
of resources highlights the commitment to enhancing the tools and utilities
that empower the OP Stack, setting the stage for further growth and innovation.
RetroPGF 2 Recipients - Tooling & Utilities
RetroPGF 2 Breakdown - Tooling & Utilities
Educations
Within the Education category, the Collective demonstrated its
commitment to knowledge dissemination by providing funding to a total of
70 individuals and projects. Notably, the top three recipients in this
educational initiative were L2Beat,
ETHGlobal, and
BuidlGuidl, underlining their significant contributions to fostering a culture of
learning and understanding within the Optimism Stack and ecosystem.
RetroPGF 2 Recipients - Educations
RetroPGF 2 Breakdown - Educations
Analyzing Results
In conclusion, Results for Round 2 similar to Round 1, there was relatively low variance among the funded projects, with
little distinction in payouts between projects of high and moderate
impact. However, in contrast to Round 1, Round 2 witnessed a more
widespread distribution of tokens. In Round 1, 58 out of 76 nominated
projects received votes, while in Round 2, all 195 nominated projects
received votes. This difference can be attributed to the relatively
small number of badgeholders compared to the allocated tokens, where
even a minor allocation by a single badgeholder could result in a
significant token distribution to a project.
Top Recipients RetroPGF Round 2 vs Round 1
The diversity of projects funded during this round improved compared to
Round 1. The majority of the funded projects in RetroPGF 2 were not
specific to Optimism but were part of the broader Ethereum ecosystem.
Funded projects spanned a wide range of areas, from infrastructure to
education, and operated in different languages and regions.
Learnings & Reflections
As we find ourselves at the crossroads of completed endeavors and
unfolding experiences, it's the perfect time for reflection. Let's take
a moment to appreciate what we've achieved and the wealth of knowledge
we've gained throughout this journey.
🤔
How Badgeholders Assessed Impact
🔍
Scaling Impact Evaluation
🤝
Badgeholders Collaboration
📌
Defining Impact = Profit
🗳️
Voting Tool & Experience
How Badgeholders Assessed Impact
Retroactive Public Goods Funding (RetroPGF) is an innovative approach
aimed at rewarding past impact within the Optimism Collective. This
concept is grounded in the belief that it's easier to gauge the
usefulness of past projects than to predict their future utility. A key
challenge in RetroPGF is how to present project information to voters
effectively. Let's explore the process and its challenges:
Project Eligibility
To be considered for RetroPGF, projects had to go through a two-step
process: nomination in the forum
and subsequent sign-up via the
Project intake form. This process aimed to filter out qualifying projects and gather
valuable information for badgeholders to assess impact.
Project Nominations
The community was encouraged to signal which projects had generated
impact for the Optimism Collective. However, the nominations process
resembled a mini-dilemma of the commons, with few participants
feeling responsible or incentivized to nominate relevant projects.
Surprisingly, even some top recipients had to self-nominate.
However, being nominated was a positive signal, as all nominated
projects received some funding.
Project Intake Form:
This form aimed to collect information that would help badgeholders
evaluate projects' impact and potential sources of external funding.
Questions included:
"How do you support the development and usage of the OP Stack?
What public good do you provide to the Collective?"
"How do you sustain yourself? Please list sources of funding and
revenue."
Almost all of projects, information provided by projects was often too
vague, making it challenging for badgeholders to assess impact accurately.
This was due to the lack of guidance.
Unclear Information & States
The community expressed the need for a more aligned and structured
process
"Many projects did not provide enough information on the elements
they were evaluated on: what is their impact to optimism, and what
is their funding situation like,” - Anonymous.
“The application form for next season should be more aligned with
the review assessment process,” - Krzysztof Urbanski.
“…ask projects to more clearly submit information that will be
relevant to the evaluation criteria (impact and access to funding
being the main one),” - Cassidy.
Project Profiles
Project descriptions and impact narratives were often
narrative-driven, while funding sources lacked specific numbers.
This resulted from a minimal prompt and limited examples for
projects to follow. Projects tended to focus on future aspirations
rather than describing their past impact.
Scaling Impact Evaluation
Evaluating project impact in Retroactive Public Goods Funding (RetroPGF)
is no small feat. Badgeholders were tasked with assessing a multitude of
projects, leading to significant challenges:
Quantity Overload
Badgeholders consistently expressed concerns about the sheer number
of projects to review. Feedback included:
"Smooth experience, but way too many projects."
"...this is really about it being unmanageable for badgeholders."
In this round, a staggering 195 projects were eligible for voting,
compared to 76 in Round 1. Most badgeholders distributed their votes
across 20-40 projects, with the median badgeholder evaluating 30
projects.
Introducing "Collections"
To address the issue of evaluating individual contributions at
scale, the Optimism Foundation introduced the concept of
"Collections." Each collection was a list of contributors with
assigned weights for funding distribution. Five collections were
nominated, including Monorepo Dependencies, EIP-4844 Contributors,
and Optimism Support NERDS, Ambassadors, and Translators.
The experiment aimed to simplify the allocation of funding to
broader groups of contributors, which might have been more complex
if individual contributors were considered.
Incentive Distortion: Critics argued that collections created
strong incentives for work that could be retroactively funded,
potentially altering teams' priorities.
Challenges in Assessment: Assessing individual contributions to
determine collection weights raised concerns about biases towards
visible work.
High-Leverage Voting Through Categories
Looking ahead, categories may offer a solution through high-leverage
voting. Badgeholders without expertise in a particular area could
allocate funding to an entire category, which would then be
distributed proportionally to other badgeholders' votes.
Badgeholders Collaboration
In Round 2, 71 badgeholders were entrusted with distributing 10 million
OP, a substantial responsibility. To facilitate this complex evaluation
process, the Optimism Foundation emphasized collaboration and provided
guidance through a badgeholder manual
and
onboarding calls.
Guidance with Flexibility
The provided guidelines were comprehensive yet flexible, offering
frameworks for evaluation rather than rigid rules. This approach
encouraged badgeholders to apply their own judgment in translating
philosophical concepts into real-world assessments.
Emphasis on Collaboration
Collaboration among badgeholders was strongly encouraged, fostering
a high-context environment through asynchronous communication on
platforms like Discord
and Telegram. Additionally,
collaborative calls hosted by Other Internet played a pivotal role.
The Impact of Collaborative Calls
Co-Working and Collective Intelligence, The first call aimed to
provide co-working time, allowing attendees to delve into projects
with their breakout groups. It provided an opportunity to discuss
questions and insights about decision-making processes. This
collaborative approach leveraged the collective intelligence of
badgeholders.
“It was really helpful to have sessions like this one with fellow
badgeholders to talk about the process, different methods people
were using, and the different ways others were approaching
voting.”
The second call focused on feedback, reflection, and the
accumulation of ideas for future rounds. Badgeholders found these
sessions immensely valuable, and they should continue to be an
integral part of RetroPGF.
“I appreciate the diversity of badgeholders and the work done by
badgeholders to collaborate.”
Defining Impact = Profit
One of the Optimism Collective's core values is "impact = profit," a
principle that individuals should receive profit equivalent to the
impact they contribute to the collective. However, applying this
framework in practice can be challenging, particularly without a clear
and quantitative definition of "impact" or "profit."
The Challenge of Interpretation
Evaluating the types of public goods deserving funding is one of the
most intricate aspects of Retroactive Public Goods Funding
(RetroPGF). Badgeholders widely expressed the need for greater
clarity in impact evaluation and philosophical alignment on the
types of projects RetroPGF should support.
"Are we taking impact vs. profit literally?”
“On the philosophy of impact = profit, we wish there was a clearer
definition of what impact looks like.”
Seeking Clarity in Evaluation
“Introduce better categories and stronger evaluation heuristics
for each category.”
“More discussion and structure of what the assessment criteria are
- what are the goals and criteria that everyone can agree on.”
“Different people were assessing different ways and had their own
criteria for assessing. People were not in sync on the criteria,
and how we each determined that based on the applications was
unclear.”
Custom Evaluation Frameworks
In response to the ambiguity, some badgeholders developed their
own evaluation frameworks. These often included categorizations and combinations of criteria
to simplify impact assessment. Examples ranged from binary criteria
like
"Is the Project Optimism specific [Y/N]"
"to simplified impact sizing like "Contribution Type [Large,
Medium, Small]."
The Dilemma of Future Impact
With the rise of proactive grant models, considering future impact
during evaluation became a topic of debate. Badgeholders engaged in
discussions about whether to factor in expected future impact. A
Twitter poll by Tim Beiko on
Revealed mixed opinions. It highlighted the complexity of making the
concept of retroactive funding well-understood.
Addressing the Challenges
How can we provide better mental models and definitions for impact
evaluation?
How can we support badgeholders in more effectively collaborating
on impact assessment?
How do we communicate the core mechanics of retro funding in a way
that preserves badgeholder agency?
The path to aligning "impact" and "profit" in RetroPGF is laden with
complexity and calls for continued dialogue, exploration, and
refinement. The collective pursuit of a shared understanding and
effective evaluation methods will be instrumental in realizing the
vision of retroactive public goods funding.
Voting Tool & User Experience
Round 2 brought valuable insights into the voting process. While the
voting experience faced challenges, it also demonstrated the
resourcefulness of badgeholders in finding creative solutions. Let's
explore the journey and future prospects of voting tooling within
RetroPGF.
MVP Voting Solution
Optimism Foundation opted for a Minimum Viable Product (MVP) voting
solution instead of a fully integrated voting interface.
Badgeholders submitted their votes using a DeForm form with wallet
verification. To facilitate the vote allocation process,
badgeholders were provided with a voting scratchpad, allowing them
to allocate their votes, ensuring they added up to 100%, before
copying them into the form. The scratchpad also served as a means
for badgeholders to share their vote allocations with the community.
Future rounds of RetroPGF must aim for a smoother and more
user-friendly voting experience, eliminating operational issues for
badgeholders. However, beyond addressing friction, the emergent
behavior observed in Round 2 highlights a significant design
hypothesis: RetroPGF should evolve into a permissionless protocol
that empowers community members to build voting, evaluation, and
aggregation experiences on top of it. This direction deserves
exploration in future rounds.
Questions for Improvement
How can the Optimism Collective provide a more seamless voting
experience to badgeholders?
How can the Optimism community collaborate to develop tooling that
enhances the RetroPGF system for all participants?
The RetroPGF journey is one of continuous learning and adaptation,
with the aim of creating a more inclusive, efficient, and
community-driven platform for rewarding past contributions.
The Next Journey
Retroactive Public Goods Funding (RetroPGF) Round 2 marked a significant
milestone, supporting nearly 200 creators of public goods within the
Optimism Collective. Beyond the immediate impact, this round provided
invaluable insights into the intricate design challenges of the
retroactive results oracle, bringing us closer to realizing Ether's
Phoenix.
As we look ahead to Round 3, with an announcement coming soon™, the
Optimism Collective is poised to iterate on the core challenges outlined
in this piece. These challenges encapsulate the ongoing quest to create
a more robust and community-driven RetroPGF
As we embark on this journey, we invite contributors to join us in
building the different pieces of the RetroPGF. RetroPGF is more than a
funding mechanism; it's a pillar of the Collective, an ever-evolving
cycle, an infinite game. When executed effectively, RetroPGF has the
potential to transcend Optimism and serve as a model for a new global
economy that truly rewards impact. Between the present and that future,
there's ample room for experimentation and innovation.
Stay tuned for requests for proposals, and let's continue to shape the
future of Retroactive Public Goods Funding together.