# Gitcoin Passport spin-out and budget proposal Source: https://gov.gitcoin.co/t/proposal-s23-gitcoin-passport-business-unit-budget-proposal/18958 Kiwi News: https://news.kiwistand.com/stories/Gitcoin-Passport-spin-out-and-budget-proposal?index=0x667194ae3a0c4431622b77f2ec60c68c4f80e68e1057112c171c6f7e6d8cdaef59505fe0 Submitted by macbudkowski.eth on 2024-06-18 UTC, 2 upvotes, 0 comments ## Summary Gitcoin's Passport business unit has proposed a vote to spin out of Gitcoin DAO, with a request for a net allocation of [TBD] GTC, equivalent to about $1,604,857, to fund the business for six months. In return, Gitcoin would hold equity, a token allocation if a token launches, and a board seat, with the Gitcoin Foundation to formalize these terms. The team targets completing the spinout in July, when it would begin using its own website, Discord and email. Passport reports 1.4M unique passports, 1.75M GTC staked, and revenue from OP and Linea. ## Article [PASSED] S23 - Gitcoin Passport Business Unit Budget Proposal Hey Gitcoin Community - we are excited to present our FINAL six month budget to the DAO. It has been a goal of mine and others on the team to graduate Passport from Gitcoin as Gitcoin has been focused on Grants and growing GMV for a while now. At the same time, the Passport team has been focused on identity and the emerging world of onchain reputation, with some support for Gitcoin, but largely prioritizing the broader Ethereum ecosystem. Creating separation from the two entities ensures Passport’s actions across the space are no longer associated with the Gitcoin brand, and while Gitcoin continues to focus on capital allocation, there will no longer be questions on why we have an identity solution in the portfolio. This budget request seeks funding to enable the spin out of Passport and fund the business for its initial six months. Here is what we are thinking. Passport has generated revenue on OP and Linea (by enabling onchain attestations of one’s unique humanity, and OP RPGF3). Together with this funding, and a six month budget, we would like to formally request a vote to spin out of Gitcoin DAO. In return for bootstrapping the business unit, we will ensure Gitcoin has equity ownership in the new entity, a token allocation if/when we launch a token and a board seat in the new entity. The details on how a DAO may participate are a little murky (ie, have equity, and a board seat) and so we will be working with the Gitcoin Foundation to formalize the ownership and board seat appointment. Passport currently drives the majority utility use case for GTC and we plan to keep GTC utility in the product for the foreseeable future. We do not have details on if/when Passport has its own token, but we want to ensure as Gitcoin will likely be a large token holder in Passport, there will be token use cases that extend utility for other ERC-20 (like GTC). We are aiming to have this spinout complete in July, and would expect the Passport team to start to use its own properties (ie, Passport.xyz for the website and app, its own discord server, its own email, etc.) on July 1. While Passport will be an independent entity, there will still be lots of areas of collaboration as those running grants programs often need Sybil protection (and those doing airdrops often want to seed a Grants program after TGE). As for the progress the team has been making, updates below outline both progress and the roadmap we have ahead. TL;DR on the next 6mos Gitcoin Passport aims to be the go-to solution for web3 identity and reputation management. We are continuing to focus on ways to build a reputational substrate that can be leveraged permissionlessly onchain: Adoption - Continue to expand the number of real humans with a passport Growth - Grow the number of onchain attestations Sustainability - Ensure continued runway extension Outline Passport is the premier web3 native offering that enables ecosystems to protect, understand and organically grow what matters most – their communities. We see Passport at the confluence of a best in class identity solution, backed by the most relevant and comprehensive data analysis toolset that also offers communities the ability to ascribe reputation. Objectives for Seasons 23: This table lists the milestones and deliverables we plan to tackle. While they are in a loose priority order, their final sequencing is still under evaluation. Initiative/Project Outcome Milestone/ deliverable Adoption Expand real human user base Grow Model based detection (MBD) Increase Passport count 450k to 1.85M Passports from a baseline of 1.4M Score > 1,000,000 addresses Growth Increase onchain data available for other dApps and novel use cases Increase attestation count from 100k to 500k (across all networks) Sustainability Increase revenue Increase GTC staked Grow revenue from an average of 2.5 Eth a week to 4 Eth a week. Increase staked GTC from 1.75M to 2.25M Milestone Update: Season 22 In Season 22, our top line growth picked up quite a bit adding 255k new Passport users or 22% net new growth in May, compared to 279k new Passports or 35% total growth in the previous 3 months of S21. We now have a total of 1.4M unique all time passports. We also continued to drive strongly against our targets in GTC staking, hitting over 1.75M GTC staked. With a focus on onchain attestations, we have launched two new networks where Passport holders can attest to their unique humanity. This means, we now support attestations on Arbitrum, Optimism, Linea, and zkSync. Onchain attestations have started to unlock novel use cases where smartcontract interactions can now directly confirm a wallet’s humanity score, enabling truly permissionless and decentralized humanity confirmation. We have also done a lot of work to revamp the GTC staking experience to make the process more intuitive and informative. This has brought the creation of privacy policy details and user terms as the GTC staked can be slashed when users are acting in bad faith. And finally, our new Model Based Detection endpoint, and L2 coverage has continued to expand. We now can review wallets using our models across ARB, OP, zkSync, Polygon, Eth Mainnet, and NFT communities. This capability is incredibly helpful when engaging with other communities (new L2s) to help them understand who is likely a sybil actor and who is likely human on their network. Milestone Report for Past Season Legend: Success/Completed/Shipped Incomplete, but partial success Incomplete, Will Not Hit Goal Canceled Initiative/Project Key Results Value Delivered Ease 🟢Simplified Passport user experience Revamped Passport with fewer stamps, credentials, and simplified path to 20 score. Effectiveness 🟡Updated score weights for all Passports based on previous 6 months of data 🟢Aggregate L2 Models In addition the revamp of Passpot and the addition of the new models we’ve made significant progress dropping the False positive rate under 16%, did not hit the target of <10%. We’ll have a working model by June 30th.. Adoption 🟢1.4M Passports 🟢Scored 400k addresses with MDB Continued to drive top line growth of unique Passports by adding 255k new Passports exceeding our target of 1.3M driven by new partners Initia and zkLink. Strong prospects to continue to grow by end of year. Model based detection used to support zkLink airdrop which resulted in ~400k addresses scored GTC utility 🟡1.75M GTC Staked Staking remains strong, having increased another 95k GTC staked, but tracking to be just shy of the 1.87M target by end of June. We deprioritized the new staking experience to support partners and top line growth, but should launch in the next 30 days. Partnerships 🟢 64 API Partners 🔴0 new onchain partners Hit our target of 64 API partners before the end of the season, which has helped drive strong topline growth. We did not hit our target of adding 5 new partners. We have 3 partners in the pipeline expected to go live in the next 60 days. Observations: We had strong growth in top line numbers driven by ‘surprise’ partners that were not initially in our funnel including both Initia, protecting their testnet, and zkLink, supporting their airdrop. Despite strong top line growth being above average, we’re underperforming on GTC staking. We’re excited to see if the new updated staking site will increase GTC staking and we’ll begin marketing efforts to help the community understand that GTC staked on an address is another strong signal in addition to the address Passport score. For more granular details on our past work and plans, please refer to our previous budgets for S17, S18 & S19, S19 (Amended), S20 & S21, S22, and also our updated Passport Roadmap. Budget Update: Season 23 We are only increasing the budget $36k to handle non-DAO compliance costs, otherwise the budget is flat for Season 23 compared to Season 22. No new additional hires for this season. Team Composition Full-Time Contributors: 13 (after hiring marketing in S22) Developers: 4 Product Manager: 1 Data Scientists: 2 Business Unit Co-leads: 2 Marketing: 1 Support: 2 Design: 1 **Part-Time or Shared Contributors: **4 DevRel: 2 DevOps: 1 Operations: 1 Funding Request for Season 23 Requested Amount: Gitcoin Passport is requesting a net allocation of [TBD] GTC*, equivalent to approximately $1,604,857 out of the treasury to cover this final season. Budget Evolution S17 S18 Amended S19 S20 S21 S22 (May & June) S23 (6 months) Passport Budget $515,254 $589,846 $494,116 $478,591 $642,216 $460,405* $1,604,857 *** Note: **The GTC amount requested and reserves will be updated based on market conditions when this proposal moves to Tally, using the lower of the current price or the 20-day moving average. Budget Breakdown Breakdown staffing, contracting, operational expenses We have accounted for upcoming expenses, aiming for a lean but comprehensive budget. Our 16-member team comprises roles in Product, Design, Engineering, DevRel, Operations, and Support. S18 (Actual Spend) S19 (Projected Actuals) S20 (Requested) S21 (Adjusted) S22 (May & June) S23 (Jul-Dec) Contributor Rewards $373,791 $318,102 $341,674 $426,799 $378,496 $1,297,891 Contracting (Dev Ops, DevRel, design, Marketing) $114,192 $70,969 $75,192 $149,192 $11,000 $125,004 OpEx (Software subscriptions, gas, audits, travel, professional development) $31,835 $42,236 $61,725 $66,225 $70,908 $181,962 Total $519,818 $431,307 $478,591 $642,216 $460,404 $1,604,857 Thanks for reviewing and the consideration!