We are currently in the midst of the Gitcoin GG22 Grant season, and it felt appropriate to tell you more about Web3-based grant systems. Similar to DeFi (Decentralized Finance), grants come with their native vocabulary, which is important to know in order for you to get involved.

Generally, a grant is a financial award provided by an individual, organization, or government agency to a recipient, typically for a specific purpose, such as funding a project or research. Grants are a particular form of financial assistance aimed at supporting the recipient's efforts to achieve specific goals or for the provision of public goods. In contrast to loans, grants are non-repayable, but there is often an obligation to use the funds received for the specific purposes indicated during the application process. Unlike donations, which are usually given more freely and without any specific conditions, grants are typically awarded through a formal application process and come with conditions and requirements.

In the world of Web3, there are several platforms and communities that are known for giving out grants for a variety of purposes. Some examples include but are not limited to:

• Ethereum Foundation Grants Program
  This is one of the leading initiatives in the Web3 space, providing grants ranging from $10,000 to $500,000 for projects contributing to the Ethereum ecosystem.

• Gitcoin
  A decentralized platform that has become one of the largest and longest-running Web3 grant programs. It uses quadratic funding to support a wide range of projects in open-source software, Web3 community building, education, and climate solutions.

• Octant
  Octant is a platform developed by the Golem Foundation that enables users to lock GLM tokens (Golem's native ERC-20 token), earn ETH rewards, and fund projects they care about. It aims to become the first self-sustaining global public goods funding ecosystem that balances public goods and individual financial empowerment.

All of the above have their own unique twists when it comes to rewarding applying projects and donors at the same time. However, there are many more ways to receive grants. Currently, ALANA is applying for a “matching grant” via Artizen, but also blockchains often run their own grant programs, such as Optimism, Arbitrum, or Solana.

Important to note is that because in Web3, these grant systems are blockchain-based, they can use much better technology to guarantee a positive impact on the applying project and the ecosystem. Some vocabulary that is important to remember are:

• Quadratic Funding (individual article will follow soon)
  Quadratic funding is like a popularity contest where the number of fans matters more than how much each fan gives. It boosts small donations from many people, making them more powerful than a few big donations.

• Matching Funds (individual article will follow soon)
  Matching funds are like having a rich friend (often projects or interested third parties) who promises to chip in extra money for every donation you get. The more people donate to your project, the more extra money you get from this big pot of bonus cash.

• Retroactive Funding (individual article will follow soon)
  Retroactive funding is like getting a bonus for work you've already done instead of a promise for future work. It rewards projects that have already made a positive impact, encouraging builders to focus on creating real value first.

For the ALANAmagazine Artizen round, two of the above mechanisms apply: quadratic funding and matching funds. Combined, they are incredibly powerful tools for ensuring projects are rewarded, which create true impact and touch many people!

Now that you know how it works, join us in making history! Your support can skyrocket our impact in the Artizen grants round for ALANAmagazine. Here's your chance to dive into the exciting world of Web3 funding - it's easier than you think! Plus, we've got an amazing offer: mint an artifact and get the next digital edition of ALANAmagazine, and we'll send you a FREE physical copy of the AIR Edition. It's a win-win - you help us grow, and you get exclusive content in return. Don't miss out on this unique opportunity to be part of something big!

But for now, it is important to remember that in the crypto space, grants are used to fund projects, research, and development to advance blockchain technology, decentralized applications, and public goods. These grants are typically provided by blockchain foundations, DAOs, or crypto businesses to foster innovation and promote community growth.

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This article was authored by Nils Otter for ALANA.