Protocol Guild: $92M+ for Ethereum Core Development

Background

Protocol Guild launched in May 2022 to address a critical gap: Ethereum core protocol contributors were underfunded relative to the value they create. The Ethereum base layer enables billions in DeFi TVL, yet the ~180 developers maintaining it had inconsistent funding.

The Mechanism

Protocol Guild uses a novel approach:

• Contributors are weighted by tenure and active participation
• Funds vest over 4 years, ensuring long-term commitment
• A simple split contract distributes funds to all members
• Anyone can donate, and major protocols are encouraged to contribute

Key Contributors

Major pledges include:

• Lido DAO: 2% of staking rewards (~$20M+ pledged)
• Uniswap: $2.5M in UNI tokens
• ENS: 200,000 ENS tokens (~$2.7M)
• Optimism: 500,000 OP tokens
• Arbitrum Foundation: Significant ARB allocation

Outcomes

As of late 2024:

• $92.9M+ in total pledges and donations received
• 187+ active Ethereum core contributors receiving funding
• 4-year vesting ensures long-term alignment
• Major protocols now recognize infrastructure funding as essential

Lessons Learned

1. Collective action works: Individual contributors are hard to fund, but a collective is fundable
2. Make it easy: One contract to fund all core devs reduces coordination overhead
3. Align incentives: Vesting and tenure weighting reward long-term contribution
4. Frame as self-interest: Protocols benefit from a well-funded base layer