Tier 2 blockchain Public Goods Network launched a testnet on July 7, pledging to spend “the vast majority of network sequencer fees” on public goods rather than paying them to the development team or token holders. , according to an announcement from the developers of the network. . In economics, a “public good” is a good that cannot be produced for profit because it is difficult to exclude non-payers from its consumption.
The new network was developed by the same team that created Gitcoin, a project that seeks to raise funds for open source projects. The Public Goods Network is being built using the OP Stack, which means it may become part of the proposed "Superchain" that will include Optimism and Base Networks.
Ok developers,
glad to announce @pgn_etha community-led L2 focused on sustainable financing of public goods
Check this out if you're building anything public goods related, because I have Eth testnet for you
⬇️⬇️⬇️ https://t.co/b0mdS1Symw
— zakk.eth (is on a mission) (@0xZakk) July 6, 2023
According to project documents, Public Goods Network willpower be an Ethereum layer 2 optimistic rollup. This type of network typically uses a centralized, for-profit sequencer to process batches of transactions and periodically send them to Ethereum.
The Gitcoin team says that their new network will reinvest "the vast majority" of this profit in public goods projects. In his view, this is necessary to prevent VC firms and others that are motivated by “rent seeking” from capturing the value provided by Layer 2:
“Rather than fill the block space for other organizations that can be captured by venture capitalists or other rent-seeking motivations, we believe we should fill our own block space so that we can reallocate those funds to further the goal of the Alliance to grow and finance public goods”.
Gitcoin claims that the sequencer fees will not go directly to them. Instead, it will go to an "alliance" that is being formed on the basis of a "newly defined governance model." In a Twitter thread accompanying the announcement, the team said the network's long-term goal is to allow projects to be funded directly from sequencer fees, without the middleman. wearing the EIP-6969 standard.
Related: Coinbase Base network publishes “road to mainnet” outlining the roadmap
The current Public Goods network is connected to the Ethereum Sepolia network via an official bridge, allowing developers to test applications using funds from the various Sepolia faucets.
Gitcoin originally rose to fame for using quadratic funding to provide grants for open source projects and other public goods. Gitcoin Head of Impact, Azeem Khan, joined the advisory board for the Foresight Ventures crypto fund in June.
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