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Who will Build

the Roads?

Funding Bitcoin

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Why are we doing this

DanO’Prey

@danoprey��dan@1a1z.com

MasNakachi

@masnak��mas@1a1z.com

2

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How does Developer Funding Compare to Tech and Crypto?

3

$1.2T

$1.5T

Market Cap

Development Spend

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Market Cap

Developers

20k

Tech vs Bitcoin vs Crypto

41

1.2%

$8.4m

$7.0m

98.8%

Inspired by similar comparisons made by Brink and Trammel Venture Partners�Bitcoin vs Polkadot uses Daily Average Market Cap for 2023 to compare to 2023 aggregate Bitcoin spend and 2023 Polkadot Foundation Spend on R&D, HR and Ops

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Sponsor Organizations Founding

4

Date of Founding or Launch of Bitcoin Grant Program

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

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Key Differences Between Sponsor Organizations

5

Open Donations

Private Funding

Employment

Grants

Employment

Grants

Other private companies that have historically supported or given grants to Bitcoin Core Developers include BitMEX, Coinbase, Gemini, Kraken, Paradigm, NYDIG, Xapo, and Mara

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2023 Spend by Sponsor Organization

6

Open Donations

Private Funding

Employment

Grants

Employment

Grants

Based on public data and estimates where not available

$1.9m

$0.3m

$1.3m

$0.6m

$0.2m

$1.3m

$1.4m

$1.0m

$0.3m

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2023 Spend by Funding and Type

7

Based on public data and estimates where not available

Open Donations

Private Funding

Total

Employment

Grants

Total

$8.4m

$5.1m

$3.3m

$3.2m

$5.2m

$3.6m

$1.6m

$1.7m

$1.5m

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Legal Registration of Sponsor Organizations by Jurisdiction

8

Registration Location

*OK Group, the parent of both OKX and okcoin, and its subsidiaries are registered in multiple jurisdictions including the Seychelles, Malta, Hong Kong and Singapore

*

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Sponsor Organizations by Geographic Focus

9

Physical Hub

Regional Focus

No Regional Focus

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Global Active Core Developer Distribution

10

Source: Contributors to bitcoin/bitcoin - Githubhttps://github.com/bitcoin/bitcoin/graphs/contributors?from=3%2F30%2F2024

8

7

New York

Massachusetts

UK

Sweden

Austria

DC

Germany

2

Netherlands

Argentina

Brazil

Switzerland

Ontario

Nigeria

Bulgaria

El Salvador

Florida

USA11

LatAm3

Africa1

Australasia1

Europe15

Asia1

Developers with at least 5 commits merged in 2024 as of October 14th

Unknown

Australia

India

8

2

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Global Commits Distribution

11

LatAm6%

Africa1%

Unknown (7%)

% of total commits merged in 2024 as of October 14th

Source: Contributors to bitcoin/bitcoin - Githubhttps://github.com/bitcoin/bitcoin/graphs/contributors?from=3%2F30%2F2024

Asia2%

Australasia1%

Europe56%

Nigeria

30%

25%

USA

Sweden

12%

Austria

Argentina

Germany

Netherlands

UK

Switzerland

India

Brazil

Canada

Bulgaria

El Salvador

Australia

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Funding Centralization - “We need more Jacks!”

12

$35m

$28m

$21m

$14m

$7m

$0

Est. $8-10m

$14.1m

$23.60m*

*Donation was in BTC, based on market prices at the time in February 2021

$34.24m

100%Split Undisc.

Undisc.

14.2%

90.5%

$23.40m

100%�����

CEO

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Funding Sustainability

13

Examples of Funding Tied to Market Conditions

Opportunity for Greater Private Sector Involvement

Miners / Pools

Exchanges

ETF Issuers

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Summary of Areas for Improvement

14

$8.4m�Total Spend�2023

Low Developer�Count

Jurisdictional�Centralization

Regional�Coverage

41�Active Core�Developers

Low Proportional�Spend

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Summary of Areas for Improvement (cont.)

15

Funding�Centralization

Funding�Sustainability

Lack of Employment�Opportunities

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Bitcoin vs Crypto venture investments

16

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Bitcoin vs Crypto venture investments (cont.)

17

$75.4bn vs $546.3mm

0.72% vs 60%

$1.9t vs $1.25t

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VC funding trends

18

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Trend Over Time

19

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Bitcoin-focused venture capital firms

20

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Co-Investment Analysis

21

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Bitcoin investments by category

22

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Venture trends

  • Increase in capital from crypto and traditional VCs
  • Bitcoin treasury plays
  • Infusing Bitcoin
  • M&A / IPOs / SPACs
  • Store-of-value (SOV) vs Medium-of-exchange (MOE)
  • Programmability

23

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Thank You!

24

Read the Full Reports

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Connect with Us

@1A1zBTC

@danoprey dano.123

@masnak masnax.99

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