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Unpacking the evaluation algorithms behind Optimism's latest funding round

· 6 min read
Carl Cervone
Co-Founder

The first (of six) periods of rewards for Season 7 Retro Funding were just announced. Here's the official post; you can view the results on OP Atlas. This marks a significant milestone in Optimism’s journey toward scalable, transparent, and data-driven token allocations.

At OSO, we’ve been fortunate to support this journey since RetroPGF 3—building open data infrastructure, surfacing impact metrics, and helping the community make sense of complex funding decisions. With Season 7, we’ve taken a more active role: implementing the evaluation algorithms that determine how funding is allocated.

OSO's Architecture Evolution

· 10 min read
Raymond Cheng
Co-Founder
Reuven Gonzales
Founding Engineer

Over 2024, OSO's technical architecture went through several major iterations to get to where it is now. There are so many different ways to architect data infrastructure, that the choices can be overwhelming. Every platform will say they provide what you think you need, and none of them will do everything you actually need. In this post, we'll share the choices that OSO made along the way and the pros and cons of each decision.

Introducing Pyoso: our new Python library for data scientists

· 3 min read
Carl Cervone
Co-Founder

We're excited to introduce Pyoso, a new Python library that makes it easy to query and analyze open source software data and metrics from OSO. Whether you're a data scientist, researcher, or builder, Pyoso gives you direct access to all our production data sets from your favorite analysis environment.

No need to manage infrastructure or wrangle database credentials. Just install the package, authenticate with your free API key, and start querying!

Looking back at Octant's funding to open source in 2024

· 8 min read
Rohit Malekar
Insights and Partnerships

Octant is an important funding partner for OSO and dozens of other open source projects in the Ethereum ecosystem. Since 2023, Octant has contributed approximately $5 million (in ETH) to over 60 projects.

Octant has a novel way of funding open source. Users of the Octant platform lock GLM tokens into a staking contract. In exchange, they gain voting rights and earn ETH rewards. Every quarter, Octant runs an "epoch" where users get to allocate a portion of their staking rewards to projects they care about. This allocation determines how a larger staking pool from the Golem Foundation is allocated across a set of projects.

In 2024, Octant supported 47 open source software teams across four epochs. The funded projects have been diverse in scope, ranging from privacy-focused tools like Tor to ecosystem analytics platforms like L2Beat to up-and-coming organizations like the GreenPill Developer Guild.

This post explores some high-level trends in developer activity over the past year. As these projects have different missions and objectives (and not all are open source software projects), one should not attempt to directly compare their impact or productivity. Nonetheless, we hope these insights can highlight ongoing contributions, identify growth areas, and provide additional context on what each project has been up to.

Advancing data science on the Gitcoin Grants Stack

· 7 min read
Rohit Malekar
Insights and Partnerships

OSO is partnering with Gitcoin to enhance data infrastructure and analytics capabilities on top of Grants Stack.

The goal is to make it easy for developers, researchers, and community members to connect Gitcoin Grants' data with any of OSO's public datasets. In doing so, we hope to streamline data engineering, improve donor transparency, and enable more data-driven decision-making for the Gitcoin ecosystem.

This post shows how you can use OSO to:

  • Find and explore Gitcoin grantee information in OSO's repository
  • Evaluate coding activity, contributions, and productivity to assess project momentum and engagement
  • Track funding patterns across rounds, review top-funded projects, and correlate funding with developer activity
  • Identify similar grantees with comparable development profiles and discover additional funders supporting Gitcoin grantees

Opening up the ballot box (RF6 edition)

· 9 min read
Carl Cervone
Co-Founder

This is the final post in our Opening up the Ballot Box series for 2024. Changes planned for Retro Funding 2025 will likely reshape how we analyze voting behavior.

In RF6, our results (as an organization) reflected a critical issue with Retro Funding in its current form: subjective visibility often outweighs measurable, long-term impact.

We had two project submissions:

  1. Insights & Data Science (work like this series of posts): awarded 88K OP, the highest of any submission in the round.
  2. Onchain Impact Metrics Infra (open data pipelines for the Superchain): awarded 36K OP, despite being a much larger technical and community effort.

We are humbled by the support for our Insights & Data Science work. Retro Funding has made our work at OSO possible, and we are deeply grateful for this affirmation. But we can’t ignore the underlying signal: the work that is most visible-—like reports, frontends, and ad hoc analysis—-tends to receive higher funding than work that delivers deeper, longer-term impact.

Auto Retro Funding: Continuous, Simple, Automatic

· 3 min read
Javier Ríos
Engineer
Raymond Cheng
Co-Founder

Open-source projects power innovation across industries, yet they often face a significant challenge: securing sustainable funding. Retroactive funding offers a promising solution by rewarding impactful contributions based on past results, but today’s retro funding rounds are complex, time-consuming, and infrequent, making them unreliable sources of support for public goods.

This inspired us to build AutoRF during ETHGlobal San Francisco 2024. AutoRF makes retroactive funding continuous, simple, and scalable by removing the barriers that hold current models back.

Early experiments with synthetic controls and causal inference

· 4 min read
Carl Cervone
Co-Founder

We’ve been thinking a lot about advanced metrics lately. We want to get better at measuring how specific types of interventions impact the public goods ecosystem.

For example, we frequently seek to compare the performance of projects or users who received token incentives against those who did not.

However, unlike controlled A/B testing, we’re analyzing a real-world economy. It's impossible to randomize treatment and control groups in a real-world economy.

Instead, we can use advanced statistical methods to estimate the causal effect of treatments on target cohorts while controling for other factors like market conditions, competing incentives, and geopolitical events.

This post explores our early experiments with synthetic controls and causal inference in the context of crypto network economies.

Opening up the ballot box (RF5 edition)

· 13 min read
Carl Cervone
Co-Founder

Optimism’s Retro Funding Round 5 (RF5) just wrapped up, with 79 projects (out of ~130 applicants) awarded a total of 8M OP for their contributions to Ethereum and the OP Stack. You can find all the official details about the round here.

In some ways, this round felt like a return to earlier Retro Funding days. There were fewer projects than Rounds 3 and 4. Venerable teams like Protocol Guild, go-ethereum, and Solidity were back in the mix. Voters voted on projects instead of metrics.

However, RF5 also introduced several major twists: voting within categories, guest voters, and an expertise dimension. We’ll explain all these things in a minute.

Like our other posts in the “opening up the ballot box” canon, this post will analyze the shape of the rewards distribution curve and the preferences of individual voters using anonymized data. We’ll also deep dive into the results by category and compare expert vs non-expert voting patterns.

Finally, we'll tackle the key question this round sought to answer: do experts vote differently than non-experts? In our view, the answer is yes. We have a lot of data on this topic, so you're welcome to draw your own conclusions.

Introducing new Open Collective transactions datasets

· 3 min read
Javier Ríos
Engineer

Open Collective is a platform that enables groups to collect and disburse funds transparently. It is used by many open-source projects, communities, and other groups to fund their activities. Notable projects include Open Web Docs (maintainers of MDN Web Docs), Babel, and Webpack.

At Open Source Observer, we have been working on collecting and processing Open Collective data to make it available for analysis. This includes all transactions made on the platform, such as donations, expenses, and transfers. Datasets are updated weekly.