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Layer-2 blockchain Public Goods Network launched a testnet on July 7, promising to spend \u201cthe vast majority of net sequencer fees\u201d on public goods instead of paying them out to the development team or token holders, according to an announcement from the network\u2019s developers. In economics, a \u201cpublic good\u201d is a good that cannot be produced for profit because it is difficult to exclude non-payers from its consumption.<\/p>\n
The new network was developed<\/a> by the same team that created Gitcoin, a project that seeks to raise funds for open-source projects. Public Goods Network is being built using the OP Stack, meaning that it can become part of the proposed \u201cSuperchain\u201d that will include<\/a> Optimism and Base networks.<\/p>\n Okay Devs,<\/p>\n Overjoyed to announce @pgn_eth<\/a>, a community-led L2 focused on sustainable funding for public goods<\/p>\n Check this out if you’re building anything related to public goods, because I have testnet Eth for you<\/p>\n ⬇️⬇️⬇️ https:\/\/t.co\/b0mdS1Symw<\/a><\/p>\n \u2014 zakk.eth (is on a quest ) (@0xZakk) July 6, 2023<\/a><\/p><\/blockquote>\n According to the project’s documents, Public Goods Network will<\/a> be an Optimistic layer-2 rollup of Ethereum. This type of network generally uses a profit-making centralized sequencer to batch transactions and periodically submit them to Ethereum.<\/p>\n The Gitcoin team says their new network will reinvest \u201cthe vast majority\u201d of this profit into public goods projects. In their view, this is necessary to prevent venture capital firms and others who are motivated by \u201crent seeking\u201d from capturing the value provided by layer-2s:<\/p>\n \u201cRather than fill blockspace for other organizations who may be captured by VCs, or other rent seeking motivations, we believe we should fill our own blockspace such that we can reallocate those funds to further the Alliance\u2019s objective of growing and funding public goods.\u201d<\/p><\/blockquote>\n Gitcoin claims that the sequencer fees will not go directly to them. Instead, it will go to an \u201calliance\u201d being formed based on a \u201cnewly defined governance model.\u201d In a Twitter thread accompanying the announcement, the team said the network\u2019s long-term goal is to allow projects to be funded directly by sequencer fees, without a middleman, using<\/a> the EIP-6969 standard.<\/p>\n Related: <\/strong>Coinbase\u2019s Base network publishes \u2018path to mainnet\u2019 outlining roadmap<\/strong><\/a><\/em><\/p>\n The current Public Goods network is connected to the Ethereum Sepolia network through an official bridge, allowing developers to test out apps using funds from Sepolia\u2019s various faucets.<\/p>\n Gitcoin originally rose to prominence by using quadratic funding<\/a> to provide grants for open-source projects and other public goods. Gitcoin\u2019s head of impact, Azeem Khan, joined the advisory board<\/a> for crypto fund Foresight Ventures in June.<\/p>\n<\/div>\n\n