Public Goods Funding

Definition ∞ Public goods funding refers to the allocation of resources towards projects or services that benefit an entire community and are non-excludable and non-rivalrous. In the context of blockchain, this often involves supporting infrastructure development, research, security audits, or educational initiatives that benefit the broader decentralized ecosystem. Such funding aims to address the collective action problem where individual incentives might not align with collective welfare.
Context ∞ The discussion around public goods funding is prominent in cryptocurrency news, with many decentralized autonomous organizations and protocols exploring sustainable models to support ecosystem growth. Reports frequently highlight initiatives like Gitcoin Grants or specific treasury allocations aimed at funding projects that provide broad value but might lack direct commercial viability. The challenge lies in creating equitable and efficient mechanisms for resource distribution to support the long-term health of decentralized networks.