At the UN Open Source Conference, I joined a breakout session on funding open source. 

We discussed tensions between current funding models, sustainability, and incentives with maintainers from Python Software Foundation, Processing Foundation, Linux devs, etc

I brought up crypto...and things got interesting... ↴

cultivating sovereignty and stewardship // one must imagine Sisyphus happy // prev consensys / chainbound / NPR // https://fevenm.substack.com

First takeaway:

Sporadic funding = stalled momentum.

Many OSS projects lack consistent financial support, making it hard to plan for long-term stewardship, security, or growth.

We discussed funding types like:
→ Corporate sponsorship
→ Government grants
→ Civic tech & philanthropy
→ Consumer donations
→ Paid features
→ Crypto

Each model has tradeoffs.

Corporate sponsorship often skews priorities. Maintainers shared stories of feeling pressured to prioritize features requested by enterprise sponsors over what might actually be better for the project's long-term health, sustainability, or security.

The incentive misalignment is persistent among projects.

Government grants: what used to be consistently reliable is now very risky due to administrative cuts and shifting political climate. 

Several projects have shared that the grants that they were promised have now been cut and are now scrambling to meet needs.

I brought up Crypto :) and it...sparked a conversation 😅 

When I brought up crypto / tokens as another form of capital / fund raising, those familiar with the space were generally open to the discussion, but they also shared stories of significant push back from their communities

Here’s the concerns they shared: 
→ tokens could create artificial hype around a project 
→ pump & dump schemes from unknown participants
→ market manipulation leading to reputational damage
→ unexpected fluxes in funding (volatility)

However, given the unreliability of traditional funding pathways, people were really open and driven to find more sustainable resources and to explore diverse and alternative funding pathways

Maintainers wanted to understand how Ethereum's funding mechanisms worked, how crypto orgs sustain themselves, and what kinds of mechanisms work at scale

A new economy for open source.

We are hiring talented engineers to build the future of software. Apply now!

https://merit.systems/careers

As legacy funding continues to fall short for many OSS projects, this moment presents a unique opportunity for crypto ecosystems to lead a new way:

→ community-first approach
→ aligned incentives
→ transparent governance
→ novel mechanisms like quadratic funding, deep funding, @meritsystems

because when your government grant gets slashed and your corporate sponsors start making demands that hurt your project...

...the risky crypto option starts looking like the only stable one

First Draft Club

🧵 THREAD: Why open source devs are still struggling to get paid in 2025 - and how I am fixing it.

The open source ecosystem powers 90% of the web, yet most maintainers work for free. Let's explore the problem and a simple solution:

1/ The open source paradox: Projects like elizaOS  (powering AI agents, MC reached $2B+) are built by devs working nights and weekends

"This is @shawmakesmagic - $100k in debt 70 days ago. Coding till 3am every night to pay rent. Turns a crazy idea into $2B+ AI project."

2/ "Having an incentive mechanism while being open source is quite challenging - it's a balance between 'community' and 'value capture'"

This is the core problem: How do we fund public goods without paywalls that limit adoption?

3/ Contribution-based systems show promise but have limitations:

"On-Chain Contribution Tracking: Use verifiable logs (GitHub commits, forum posts) to measure actual work done."

The problem? Complex to implement and maintain for smaller projects.

@feven thanks for this reporting, it’s very interesting and completely aligned with my initial vision behind @tipdotmd. I spoke about it below.
For me it’s not tokens that projects should focus on, I agree can perverse incentives, but receiving mainstream ones in a frictionless way from the users is the solution imo.

Would love to connect and chat more about this.

README to tips, in minutes. The easiest way to receive cryptocurrency tips through a simple markdown button. Create yours at https://www.tip.md
| By @xr0am-

Be steadfast. Amor Fati.
Building @tipdotmd

@feven thanks for this reporting, it’s very interesting and completely aligned with my initial vision behind @tipdotmd. I spoke about it below.
For me it’s not tokens that projects should focus on, I agree can perverse incentives, but receiving mainstream ones in a frictionless way from the users is the solution imo.

Would love to connect and chat more about this.

https://farcaster.xyz/xr0am-/0xce2c0a02