Cryptocurrency exchange Coinbase has made a sizable donation to support developers working on Bitcoin's open-source protocol.
As announced in a tweet on February 16, 2024, the company donated $3.6 million to Brink - a non-profit organization that provides funding to Bitcoin developers through fellowships and grants.
The donation came from Coinbase's GiveCrypto initiative, which was launched in 2018 with the aim of driving cryptocurrency adoption through direct cash transfers.
However, in December 2023 Coinbase announced plans to wind down GiveCrypto after determining it was unable to create lasting change solely through unconditional cash transfers.
Despite closing down GiveCrypto, Coinbase CEO Brian Armstrong and his team decided to make this donation to Brink, crediting it as supporting "Bitcoin developing funding efforts." Notably, Brink stated the donation came with no strings attached.
Brink was founded in 2020 as a way to provide sustainable funding for Bitcoin developers working on open-source improvements to the blockchain protocol. In July 2023, the organization received a $5 million pledge from Block CEO Jack Dorsey.
With donations from companies like Coinbase and Block, Brink runs grant programs that let developers apply for funding ranging from $1,000 to $250,000.
The goal is to support technical improvements that strengthen Bitcoin's capabilities with no expectation of anything in return.
Bitcoin's open-source nature has been a key philosophical tenet and helped drive rapid innovation in its early years.
However, as Bitcoin has grown, there have been concerns about developer funding drying up and stifling future progress.
Initiatives like Brink aim to provide open-source Bitcoin developers reliable income, enabling them to focus full-time on protocol improvements.
The Coinbase donation represents a major contribution toward sustaining Bitcoin's open-source ecosystem.
Other companies are also beginning to recognize the importance of supporting open-source blockchain developers. For example, asset manager VanEck pledged 5% of profits from its recently approved Bitcoin exchange-traded fund to Bitcoin Core developers.
Impact on Bitcoin
The donation comes at a time when Bitcoin is regaining momentum, with its price rising back above $50,000 in February 2024.
With renewed corporate and financial industry interest in Bitcoin, there is likely to be increased need for protocol innovations to support growing demands for transaction throughput and integration with mainstream finance.
By providing funding for Bitcoin developers, donations like Coinbase's $3.6 million can go a long way in ensuring that the Bitcoin protocol evolve to meet these needs.
With the help of donations, improvements that make Bitcoin more scalable and useful can further boost broader adoption and institutional investment.
On-Chain Media articles are for educational purposes only. We strive to provide accurate and timely information. This information should not be construed as financial advice or an endorsement of any particular cryptocurrency, project, or service. The cryptocurrency market is highly volatile and unpredictable.Before making any investment decisions, you are strongly encouraged to conduct your own independent research and due diligence
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