Debt and Sustainability
A new strategy for Ethos grants
There has been a lot of motion in the public goods department, all in the hopes of better serving the physical communities seeking to spread the Ethereum gospel locally and globally!
Our goal continues to be finding the best events that bring together Web3 technologies and everyday life. In addition, we’re also exploring long-term sustainability strategies that will allow us to continue this work for years to come.
We do this mainly by giving grants and advisory support to the most impactful teams we find across the Ethereum ecosystem.
We've seen a steady stream of successful outcomes in the early events we've supported thus far, including Notfellows, ETHSamba, Blockchain and Business, RaidGuild & Nonce hack, and many others.
However, as things stand, we have decided to explore on-chain lending as well as grants in an effort to avoid emptying the coffers too quickly.
Why loans?
“Isn't Ethos a grant-giving organisation?”
We sure are, but every organization needs fuel for the fire and it is our utmost desire to continue running this engine, and not just ours but also that of the previous and future beneficiaries of the program.
Our activities are having a positive impact on the Ethereum space and, as a result, people's lives.
“In collaboration with ETHos we are exploring many ideas around sustainability and models that will allow us to develop consistent revenue streams and continue to expand the Ethereum community in Brazil.”
~ Marcos Navaro ETHSamba
“ETHos has been helping us to think about how to attract attendees and sponsors to support the event using some marketing techniques that we had not thought of previously. Overall we are very confident about the outcome of this event, having done it virtually for the last 2 years.”
~ Peth Yursick MetaFest
“ETHos has been instrumental in the success of both events. Notfellows India would not have happened without funding from ETHos (it was the depth of bear market); Notfellows Tokyo received operational support from ETHos in addition to funding, making the team’s hosting experience much better.”
~ Rebecca Dai
We’re most excited about our grantees in emerging markets, such as the Balkans, Africa, & Latin America.
In order to keep up this good work, we must put a strong focus on sustainability and giving loans is our earliest experiment.
How can loans accelerate the mission of Ethos?
First and most importantly, incorporating loans as one of our funding mechanisms can greatly assist in creating new revenue sources.
It will guarantee continued funding for our benefactors and when there is continuous funding, we have the resources to reach a wider spectrum of recipients and also, entice sponsors who may be looking to support events at the last minute.
Since we place a high priority on impact, our lending program will prove to be beneficial to the regions where they will be held, since they will be targeted helping event organizers secure venues early and locking in the operational contracts , thus furthering the organization's goals.
Through these loans, we can rely less on external funding sources.
We can keep a steady stream of funds for upcoming grants and loan disbursements by handling the repayment and reinvestment process on-chain, using Spigot Smart Contracts.
By reinvesting loan repayment proceeds back into programs, we can thus increase our influence, make the most of our time and resources while exploring new events we can support.
Another good reason why loans can be useful is in the recoupment of funds.
Grant money is frequently awarded with the understanding that it will be put to use for the predetermined goals listed in the grant agreement.
However, there can be times when the recipients are unable to use the money properly or don't adhere to the terms that were set.
In situations like this, loans will enable us to reclaim some or all of the lost cash, minimize losses and ensure transparency in the grant-giving process.
We’re really excited to announce our partnership with DebtDAO, their revenue based financing helps to facilitate these loans.The platform is completely anonymous, on-chain, and trustless,There are no legal contracts, fiat, or KYC requirements to get a loan from DebtDAO, you can use collateral or setup an uncollateralized loan with custom terms.
It is the first time ever that DAOs and Defi protocols can use a line of credit against their future cash flows to expand their operations sustainably.
Instead of leaking value back into fiat currencies, this will encourage DAO expansion and crypto-native on-chain economic activity that supports our ecosystem.
Putting that aside, we are enthusiastic to see new candidates emerge with fresh perspectives that will introduce Ethereum to new locations throughout the globe.
We welcome your applications for funding here if you or your community are organizing a physical, live event that you believe ETHos should support or if you wish to sponsor one of our initiatives contact us here.
We appreciate your attention and look forward to seeing you at one of our events soon.