Protocol Guild: $92M+ for Ethereum Core Development

## Background Protocol Guild launched in May 2022 to address a critical gap: Ethereum core protocol contributors were underfunded relative to the value they create. The Ethereum base layer enables billions in DeFi TVL, yet the ~180 developers maintaining it had inconsistent funding. ## The Mechanism Protocol Guild uses a novel approach: - Contributors are weighted by tenure and active participation - Funds vest over 4 years, ensuring long-term commitment - A simple split contract distributes funds to all members - Anyone can donate, and major protocols are encouraged to contribute ## Key Contributors Major pledges include: - **Lido DAO**: 2% of staking rewards (~$20M+ pledged) - **Uniswap**: $2.5M in UNI tokens - **ENS**: 200,000 ENS tokens (~$2.7M) - **Optimism**: 500,000 OP tokens - **Arbitrum Foundation**: Significant ARB allocation ## Outcomes As of late 2024: - **$92.9M+ in total pledges and donations received** - **187+ active Ethereum core contributors** receiving funding - **4-year vesting** ensures long-term alignment - Major protocols now recognize infrastructure funding as essential ## Lessons Learned 1. **Collective action works**: Individual contributors are hard to fund, but a collective is fundable 2. **Make it easy**: One contract to fund all core devs reduces coordination overhead 3. **Align incentives**: Vesting and tenure weighting reward long-term contribution 4. **Frame as self-interest**: Protocols benefit from a well-funded base layer