Gitcoin has announced that in May 2025 it will officially close its Grants Lab business unit and Grants Stack technology platform. This decision was made due to financial pressures and the need to focus resources on the core Grants Program.

As the leading platform for decentralized public goods funding, Gitcoin said that the difficult decision was made after months of internal evaluation to ensure the organization's long-term sustainability. Grants Lab reportedly costs over $3 million to operate annually, but generates only about $1 million in revenue, a financial model that is difficult to sustain in the current bearish crypto market environment.

Despite its upcoming closure, Grants Lab has made significant contributions to the Web3 ecosystem in the past, including the expansion of its secondary funding technology, the development of nine new funding mechanisms, and partnerships with mainstream ecosystems such as Optimism and Polygon. Its incubated projects such as Gitcoin Passport and Allo Capital will continue to operate independently.

Gitcoin has developed a transition plan that will assist partners in handing over ongoing grant programs, assessing the potential for program relocation, and providing career transition support to affected employees. The organization emphasizes that the core Grants Program will continue to operate unaffected, with future enhancements to the donor and recipient experience and testing of innovative funding models.

The leadership team admits that this decision is emotionally challenging, but necessary to ensure the financial sustainability of the organization. Upcoming events such as GG24 will proceed as planned, maintaining the community's ability to fund important programs.

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