[Music] Let's get ready for our next speaker. And for this one, I'd like to bring on Denise from TV to tell you about funding continuous development. So, please give Denise a big round of applause. Thank you. Hi.
Hi. Hi, everyone. That's me. I'm Denise. I am co-founder of Devi.
I also work at Valora and I've been working in web 3 since 2016. Always focused on how to bring more people on chain, how to drive user adoption. And it's really hard. Probably not a news flash there. U driving new users, onboarding new users is hard.
I looked at it um through the lens of um driving adoptions with incentives with product uh directly to users um for a long time and I'm very excited to be here on stage today to tell you about what all this um like tackling this problem for over a year has done and what it's resulted in which is Tivy. All right, here we go. It's hard not to look at these screens. or large. Um, okay.
So, I'm here to talk about funding continuous impact and not instant hype or funding continuous hype. Um, so the longevity and sustainability of of impact. And so really looking at how we can drive user adoption, builder adoption and and just ecosystem growth in a different and new way. Um, before I move on, I would love to know who's all here in the audience. There's a lot of familiar faces, but there's also a lot of new faces for me.
So, give me a show of hands if you're a builder. Great. And give me a show of hands if you've deployed to test net ever. What about mainet deployments? All right.
And final question. Who has ever received any type of funding? A grant, a bounty, hackathon. Awesome. Okay.
So, there's a couple of you that know what I'll be talking about and maybe sharing some of the pain points. All right. So, where I want to start is looking at funding. How come we have spent as a community nearly $2 billion in ecosystem growth funding, grants, bounties, all these things and still adoption remains extremely low. this data points the data points here are from a Anderson crypto report that uh they launched in October um where they found or they estimated that there's about 5 to 10% of all crypto owners they call them so anybody that owns crypto that are active in web 3 so that's 5 to 10% a very very small amount of people so $2 billion deployed in ecosystem growth capital allocated to end user incentives they've spilled the growth and yet this is the tiny little slice that we have to show for it.
So what's what's the reason? What's why why is the impact so low? Um and that is our hypothesis and our take on this is that that is because grants do not reward long-term impact. You can see here on the left um another data point. Obviously, we're all in cryp Twitter a lot today, so might as well use the research that we do um every day.
So, why does crypto as an industry keep sinking copious amounts of money into hackathons that lead to no retention for builders? Um experimentation is they're all in for experimentation, but they need long-term oriented builder support and funding programs. At the same time um we know that there are many teams spending many projects and many protocols spending lots of money on uh very shortterm focused initiatives that drive very very poor retention. So here you see that I don't know of the 80 devs that participate in some hackathon there's only two that are still active in the ecosystem. So all this money is being put out there to try to grow the web 3 pi, right?
Like have more builders more that drive more usage. Um but yet they're not deployed very in a very smart way. So what we see is that grants instead are actually quite political. They're subjective and they are very resource intensive for everybody involved. So foundations, they have huge teams that allocate these funds and these monies to uh grants programs, they organize a lot of events.
They do a lot of um developer evangelism and and all the activities we're very familiar with. However, um they lead to very low impact for the builder side. we see here, this is someone who um is a friend in SF who won I think a hackathon bounty or some sort of grant program and it was so much work for them to like complete all the steps to get about $250 of funding and that is time that this person this builder didn't spend on building right so this the money deployed this way with this very outdated off-chain methods off-chain methods are actually preventing the thing that they're actually trying to incentivize which is more building and more onchain impact because builders are distracted trying to complete KYC. So hot take maybe not so hot web 3 growth is stifled by a broken incentive system. Lots of money deployed.
Builders do not have very good expectations of what they can rely on for a sustainability point of view of like what funding is available to them at what point. They have to take all the risk up front. Just go build ship, drive impact, apply for retrofunding, apply for a grant funding. That application goes through a committee and that committee of people will decide whether to allocate some support, some funding or not. If they do, then probably that project can move forward.
If they don't receive funding, then they kind of have to like go on to the next thing. And so here is where Divvy is at its pragma. After a whole year of thinking, how can we drive user growth more sustainably, we came up with this new idea um for divy to be the first onchain protocol that lets ecosystems pay builders only when they drive real impact that is measurable on chain and so there's no grants and no guesswork. So yes, builders are building. They're spending the time building.
They're spending their time driving onchain value and they get rewarded permissionlessly for that value. It's a little bit like sharing in the pie that they help grow. Envision ecosystems protocols lay ones, layer twos, thinking of builders as the growth engine for ecosystems and rewarding them for the value that they bring to those ecosystems in a permissionless way. in a way that is sustainable and guaranteed and very predictable so that builders can actually focus on building finding product market fit. So experimenting iterating and driving onchain impact and sustainable businesses for themselves.
All right. So how does do that? Um so we again this is all about rewarding contributions that are onchain and measurable. So first we have protocols. You can think of them as layer ones, layer twos.
We also have D5 protocols that are engaged with Divvy. Um they integrate Divvy and they uh doing by doing that they want to unlock new enduser growth channels that are delivered through the builders that they help by uh incentivizing them. So they incentivize builders to um generate incremental value for the protocols. The builders with this incentives that are like impact based incentives, they can focus on building user experiences and they can focus on finding that product market fit that is going to help onboard the next many people to web 3 and they get a share of the value that they have help create on chain as they do that. And finally, users.
Um, users as a result have a whole rainbow of user experiences, products and solutions because builders are being rewarded for experimenting and for driving that those people to bring new value on chain. And so there will be a wallet for every country. I don't know different products for different user segments. we can really think of it as really a universe of web 3 user experiences and not just like the one or two that are like successful today. So Divvy wants to be smarter about how incentives and funding is deployed.
Uh it wants to be transparent so everything is on chain. I'll go into that in a minute. Permissionless and outcomebased. So how does it work? Let's start with the protocols.
The protocols define the onchain metric that they want to incentivize. What do they care about? A lot of layer ones, well all layer ones, the number one revenue model is gas fees. So they probably want to incentivize transaction volume. Um D5 protocols, they want to incentivize TVL deposited through their protocols.
And so they pick the one onchain metric and they define it really well. Obviously, we don't want farming and all those malicious activities. And then um they fund a rewards contract um that rewards builders who are having an impact on that metric. So that are really delivering value towards that metric. The builders they integrate build Divvy with 10 lines of code.
They get a onchain refer ID uh DVY refer ID that allows for attribution to happen completely on chain and then they onboard users to their product and all of those those users and the value that those users bring onchain and to those protocols is completely attributable um on chain and then users they're transacting on these products that the builders build and their onchain activity is also completely attributable to that builder and as all of that is measured and attributable on chain that means means that protocols can pay for that impact that they see happen on chain and so rewards are flowing through those the smart contracts to builders based on the impact. There's again no grants, no applications. You don't need to know the right people at the foundations of the chains you're deploying on. You just build drive impact and get rewarded for it. Okay.
So why do growth teams ecosystem growth teams like this? So they don't have to have teams to manage this or whole teams. They have to decide okay what are the things that I want to incentivize the metric on the chain metric and what capital do I want to deploy at different instances. So kind of a little bit of the orchestration of the strategy behind how they see their ecosystem growing in the next x months. Um it's very scalable so they can experiment.
um divy contracts have a what is called a time lock and so you can think of them as campaign they can start by experimenting with a three-month campaign based on results on that onchain metric they can run a next campaign or just duplicate the campaign or extend the campaign the protocols retain full control so if the impact is not happening on chain by the end of this uh campaign the protocols re like regain withdraw all the funds um and and repurpose them for another experiment later on. And it's very high ROI capital deployment because the cost of running this is nearly zero. It's very very low for builders. Um it's a lot of transparency. It's very clear to builders what their path to revenue is.
They know if they're able to drive value onchain as defined by the protocols that they are building with that they will see revenue come from that impact and from those from the things that they're building. No grants politics. You don't have to be a wonderful grants writer. Myself as a non-native English speaker. You can tell writing is really hard.
And so if you're doing that to make sure you have funding um for a project that's really really stressful. So you don't have to worry about the politics. You don't need to know the right people, you know, not to be a great writer. Um, it's very transparent, so everything is attributed and and measured on chain. So builders and protocols, everybody sees what's happening.
It's all onchain value creation. And so it's very very transparent. And then it's long-term commitments. supportive of builders who are in it for the long term who are willing and wanting to build, iterate, experiment, talk to users, build the solutions that are going to drive uh users on chain and so value on chain and so it's building for the long run. Okay, a little bit of where we've seen this work already.
So we've seen that um value flow is evolving as web 3 is maturing. We see that there's a lot of value centric maybe this is a little bit ambitious by the way but we've seen a couple of examples of these trends where there's value centric growth rather than just trying to grow vanity metrics they actually like protocols and builders want to grow value um onchain attribution is something that is not completely new uh other protocols are doing it so we see liquidity here and beefy they're both like medium-siz D5 protocols in the space and um they share revenue with the builder. So if you have a DAP, a front end that integrates the Beefy protocol, um Beefy will share a part of their harvest fees, which is their revenue from the value that your users are bringing to Bey does something similar. So these models work, these protocols are self-sustaining. the there's a lot of builders, a lot of products that build with them and uh perceive revenue from the they get a a slice of the pie that they help grow.
So if you are a protocol looking to get started with impactbased funding, this is how you go about it. And if you're a builder, this is how we expect them to go about it so that you know and it stays really transparent. So the protocols define the outcomes that they care about. They define the onchain metric that they want to incentivize. They implement a impact rewards function.
So how will rewards be calculated when a builder drives that impact metric that they uh defined. They create a smart contract that is a smart contract with all these parameters. Um they fund it with tokens of their choice whichever tokens they want to pay out rewards in and a time lock. So that's the campaign duration. It can be three months, it could be two years.
Um it can whatever it does have to have a duration but whatever the the protocol depending on what the protocol is trying to um define as growth in that moment they launch. So they begin builder outreach they co-arket with uh divvy and other ecosystem partners trying to attract and onboard builders to build um on their chains on their protocols and with Divvy uh the builders that they integrate these 10 lines of codes and then things just grow. So builders build onchain value grows because of their users that they bring and div is tracking all that impact and the smart contract is dispersing incentives based on that impact and that revenue function that the protocols defined. So there's no applications, no grants, no no paperwork. So this is very new.
So, if you'd like to become a founding member of the Davyy community like some of the ones you've seen here, these are some of like the layer ones, layer 2s, and D5 protocols. Uh there's more that have joined the Divvy community and are creating their first um impact contracts or impact reward contracts. So if you want to if you're a back end, you want to deploy capital more efficiently. Um you um just pay for actual impacts, talk to me after this talk. I'm happy to walk you through it.
And if you're a front-end builder, we have an uh builder camp that is currently ongoing. You integrate those 10 lines of code. We're very flexible with the backends that we support uh because we're really early on. And so um you'll be able to see through that impact rewards function what your um expected revenue and rewards will be based on the impact that you drive on chain. All right.
So with that um I think we're ready for our next evolution and that is funding outcomes and not hype. So let's fund builders that to build. Let's have protocols pay for that impact and let's bring users that bring value and stay on chain and that's how we can grow the web 3 pi from all sides. Thank you. [Music]
Automatic transcript — names and jargon may be misspelled.