Allo Protocol: Building the Rails for Capital Allocation
Analysis

Allo Protocol: Building the Rails for Capital Allocation

Analysis of how Allo Protocol enables customizable funding mechanisms and its adoption across the ecosystem.

Gitcoin Research
September 15, 2024
## What is Allo Protocol? Allo Protocol is open-source infrastructure for capital allocation built by Gitcoin. It provides modular building blocks that developers can use to create any type of funding mechanism. ## Architecture ### Core Components 1. **Registry**: Project and profile management 2. **Pools**: Funding pools with configurable strategies 3. **Strategies**: Pluggable allocation logic (QF, direct, milestone, etc.) ### Key Features - **Modular**: Mix and match components - **Multi-chain**: Deployed on 10+ networks - **Open source**: MIT licensed, forkable - **Gas efficient**: Optimized for L2s ## Adoption Data (2024) ### Gitcoin Grants Stack - Powers all GG rounds (GG20-23) - 15+ community rounds per season - $3M+ distributed per major round ### Community Implementations - Karma GAP for milestone tracking - OpenQ for bounties - Various DAO grant programs ## Strategy Library Available allocation strategies: - **Quadratic Funding**: Democratic matching - **Direct Grants**: Committee-based - **Milestone-based**: Tranche releases - **RFP**: Request for proposal - **Quadratic Voting**: Preference allocation ## Lessons Learned 1. **Infrastructure enables innovation**: Others can build without starting from scratch 2. **Modularity matters**: Different use cases need different strategies 3. **Multi-chain is essential**: Users are everywhere 4. **Developer experience drives adoption**: Good docs and SDKs matter

Tags

allo protocolinfrastructurecapital allocation

Published: 9/15/2024
Updated: 12/25/2024