## 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
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
Related Topics
Tags
allo protocolinfrastructurecapital allocation
Published: 9/15/2024
Updated: 12/25/2024