Vesting to Splits
Today we're introducing the Vesting Module, the first extension to the 0xSplits protocol built natively into the app. A Vesting Module (like this one) is a smart contract that releases funds to a Mutable Split over a set period of time. They’re quick, easy and cheap to set up, and they exist independently of the 0xSplits protocol. The contracts are on Github and you can learn more in the docs.
Vesting to a Mutable Split incentivizes ongoing contributions by enabling funds collected today to be distributed over time among a changing group of recipients. We're particularly excited about this module because of 1) the implications it has for building a broader extension ecosystem, and 2) how this extension is being used to fund public goods today.
The Vesting Module is the first of many extensions that will be going live in the app over the coming months. The 0xSplits protocol was designed to be as composable & interoperable as possible, making it easy for anyone to develop their own extensions. We've received great ideas from the community about additional extensions and we’re excited about all the problems that can be solved by building extensions above or below the 0xSplits protocol. Vesting Modules are live in the app today, and you can expect more extensions to drop in the next few weeks.
We think Vesting Modules are a great way to fund public goods. Donations to public goods or open source projects have typically been backwards looking, where donations are based on past effort. Vesting Modules pointing to a Mutable Split allow donations to be forward looking, where donations are based on present and future effort. Vesting to a Mutable Split creates strong incentives for continued effort, since donations received today will be distributed to a Split that can update according to contributions made in the future.
The Protocol Guild is doing exactly this. They’re collecting donations into this Vesting Module, which then “distributes assets to a weighted list of Ethereum protocol contributors, self-curated by its membership.” You can learn more about PG and what they’re doing here.
We think there's much to explore around this idea, particularly when projects use Splits to donate a portion of their future income to the public goods on which they rely. This idea is similar to Pledge 1% with the many added benefits of a blockchain.
Stay tuned for additional extension drops over the next few weeks, and please get in touch if you have ideas about or want to partner on additional extensions.