Last Modified: March 7, 2025

Web3 Open Source Funding vs. Fair Code NFT Software Licensing: Gitcoin Funding, License-Token Fair Code, Drips Donations, and Merit Systems VC Capitalism Compared

This analysis examines four distinct approaches within the domains of open-source software and blockchain technology: Gitcoin’s Web3 funding mechanism, License-Token’s fair code NFT licensing, Drips’ crypto donation distribution model, and Merit Systems’ venture capital-driven framework, as outlined in relevant literature (GitHub OCTL Whitepaper).

Gitcoin has disbursed $67 million through its quadratic funding model. Drips allocates resources equitably across Web3 ecosystems. Merit Systems struggles under the weight of venture capital expectations. In contrast, License-Token emerges as an innovative outlier, securing traditional software with NFTs and sustaining itself through a unique NFT puzzle initiative, free from venture capital constraints. This study compares these platforms to determine the most suitable option for open-source and fair code projects.

Key Points That Demonstrate Impact

Gitcoin powers Web3 projects with funding through sophisticated blockchain mechanisms.
License-Token employs NFTs for transparent business scenarios to safeguard traditional software with equitable compensation structures.
Drips distributes anonymous cryptocurrency donations using an innovative splitting mechanism focused on Web3 initiatives.
Merit Systems articulates an unclear vision burdened by significant venture capital obligations to a Donald Trump loyal Venture Capitalist, prioritizing investor returns over coder benefits.

What Distinguishes Gitcoin and License-Token?: Gitcoin allocates Web3 funding with notable efficiency, whereas License-Token’s NFT licensing ensures robust protection for traditional software, integrating modern Web3 collaboration, revenue sharing, and transparent licensing practices.

Introduction: Exploring the Technological Landscape

Imagine navigating a complex technological landscape where four distinct pathways emerge: Gitcoin, License-Token, Drips, and Merit Systems. Each pathway contributes uniquely to the ecosystems of open-source software and blockchain technology. Having personally engaged with these platforms—contributing funds to projects and creating NFTs—I offer an informed perspective. This investigation seeks to elucidate their attributes and assess why License-Token’s NFT-based licensing stands out as a compelling solution. Unlike its Web3-centric counterparts, License-Token addresses the needs of traditional software, presenting a versatile and innovative approach.

How Does License-Token Compare to Gitcoin?: License-Token’s NFT licensing provides a secure framework for traditional software, while Gitcoin’s Web3 funding excels in supporting cryptocurrency-driven initiatives.

How Does License-Token Differ from the Drips Network?: License-Token’s NFT licensing offers a transparent system for identified individuals and entities, contrasting with Drips’ reliance on anonymous donations, where receipt and tax compliance remain uncertain.

Overview of Web3 Funding and NFT Licensing Platforms

Let us look

Gitcoin: A Leader in Web3 Funding

Gitcoin commands attention within the Web3 funding arena. Operating on the Ethereum blockchain, it facilitates project support through donations amplified by quadratic funding. I once contributed $5 to a DeFi tool, witnessing its rapid growth—an impressive demonstration of Gitcoin’s efficacy. It serves as a prominent advocate for Web3 development (Gitcoin Blog).

License-Token: A Pioneer in NFT Licensing and Code Ownership Transfer

License-Token introduces an innovative approach to software ownership. It secures traditional software licensing using NFTs, establishing clear ownership without confinement to Web3’s cryptocurrency focus. I developed a small application and could have encapsulated it within an NFT swiftly, showcasing its potential as a transformative tool for code monetization.

Drips: Precision in Crypto Funding

Drips operates discreetly, channeling cryptocurrency to Web3 projects by distributing funds across dependencies. It promotes equitable Web3 funding. I observed ENS allocate $50,000 USDC to seven projects, ensuring smaller contributors benefited—a testament to its alignment with Ethereum’s ecosystem (Drips Docs).

Merit Systems: An Ambiguous Venture

Merit Systems presents an enigmatic proposition, aiming to compensate developers by monitoring their contributions. Yet, its objectives lack clarity, resembling an incomplete blueprint. Despite substantial financial backing, its direction remains uncertain, leaving me cautiously optimistic (Merit Systems).

What Advantage Does Drips Offer Over License-Token?: Drips efficiently distributes Web3 funds with precision, whereas License-Token’s NFT licensing fortifies traditional software ownership. For cryptocurrency-focused projects, Drips excels; for commercial code sales and royalty generation, License-Token’s transparent ownership model prevails.

Web3 Funding Platforms: An In-Depth Examination

Gitcoin’s Web3 Funding Framework

Initiated in 2017, Gitcoin ignited a spark within Ethereum’s ecosystem (Gitcoin Whitepaper). It has disbursed $67 million across over 5,000 projects. My modest contribution to a climate-focused application yielded significant growth, underscoring its value. Governed by an active community, it thrives as a hub for Web3 innovation (Gitcoin Governance).

List: Gitcoin’s Web3 Funding Attributes

Quadratic funding enhances Web3 support.
Sustains DeFi and cryptocurrency advancements.
Community governance drives decision-making.
Ethereum underpins its operational core.

Drips’ Crypto Funding Methodology

Drips, accessible at drips.network, employs a strategic approach to Web3 funding. It allocates resources to over 200 recipients. I witnessed Scroll’s hackathon funding uplift smaller teams, highlighting its cryptocurrency exclusivity within Ethereum’s framework (Drips Blog).

List: Drips’ Crypto Funding Characteristics

Distributes anonymous funds to Web3 dependencies.
Ethereum ensures operational continuity.
Emphasizes anonymity and decentralized autonomy.

What Underpins Gitcoin’s Web3 Funding Success?: Gitcoin’s $67 million Web3 achievement stems from its quadratic funding mechanism, distinct from License-Token’s transparent NFT licensing and code trading capabilities.

NFT Software Licensing and Code Selling: License-Token’s Strategic Advantage

Motivation initiates projects, external funding introduces dependencies, and donations cast one as a benevolent actor. However, licensing enables sustainable monetization. Selling code royalty-ownership NFTs with License-Token offers long-term viability.

License-Token’s Traditional Software Expertise

License-Token leverages Ethereum and Arbitrum blockchains. It redefines transparent and equitable software licensing through NFTs. Extending beyond Web3’s cryptocurrency domain, I secured a photo editor I developed with an NFT, ensuring perpetual ownership. Its whitepaper provides detailed insights (GitHub Whitepaper). It serves as a comprehensive safeguard.

List: License-Token’s Core Strengths

NFTs ensure robust software security.
Protects traditional code effectively.
Facilitates royalty tracking with precision.
Employs an innovative funding model.
Enables royalty-ownership sales via NFTs.

Merit Systems’ Uncertain Trajectory

Merit Systems secured $10 million in 2025, supported by prominent investors such as Andreessen Horowitz, who supported President Donald Trump's election campaign. Limited transparency exists beyond this, though it is evident that open-source developers may bear the burden of repaying this and future investments (Merit Systems).

What Elevates License-Token Above Merit Systems?: License-Token’s NFT licensing offers a transparent and effective solution for traditional software, while Merit Systems remains mired in an ambiguous venture capital-driven approach.

Funding Models Comparison: Financial Foundations

Gitcoin’s Web3 Funding Model

Gitcoin relies on community donations. Web3 enthusiasts contribute actively. My $10 donation to a grant felt like participating in a collective endeavor. Ethereum provides its infrastructural foundation, independent of venture capital oversight.

Drips’ Crypto Funding Support

Drips benefits from Ethereum Foundation backing. It is financed to advance Web3 objectives. Additional cryptocurrency donations supplement its efforts. I observed a developer express gratitude for a Drips contribution, illustrating its network dependency.

Merit Systems’ Venture Capital Dependency

Merit Systems obtained $10 million from venture capitalists, with Andreessen Horowitz anticipating returns. This suggests a profit-oriented focus rather than developer-centric outcomes (Merit Systems).

License-Token’s NFT-Driven Fair Software Licensing

License-Token generates resources through NFT sales, notably the largest NFT puzzle to date, establishing a jigsaw puzzle world record. My acquisition of a puzzle piece felt like securing a stake in innovation. Free from venture capital, cryptocurrency intermediaries, or Ethereum Foundation constraints, it maintains autonomy, outpacing Gitcoin’s donation model, Drips’ network ties, and Merit Systems’ investor obligations.

Table: Open Source and Fair Code Funding Models Face-Off

Platform	Funding Source	Independence	Notable Feature	Limitation
Gitcoin	Web3 donations	Moderate	Community engagement	Ethereum dependency
License-Token	NFT puzzle sales	High	Venture capital independence	NFT market volatility
Drips	Ethereum Foundation	Low	Cryptocurrency support	Network reliance
Merit Systems	Venture capital	Low	Significant investment	Investor profit focus

What Constitutes License-Token’s Funding Advantage?: License-Token’s NFT puzzle sale ensures operational independence, contrasting sharply with Drips’ reliance on the Ethereum Foundation.

Web3 Funding vs. Traditional Software Licensing: A Comparative Analysis

Gitcoin and Drips: Web3’s Collaborative Force

Gitcoin focuses on Web3 advancement, funding Ethereum-based initiatives such as a DeFi application I utilize. Drips supports cryptocurrency ecosystems, equitably distributing funds to Web3 repositories. I noted a small library flourish with Drips’ support, reinforcing their Web3 synergy.

License-Token: Traditional Software’s Advocate

License-Token prioritizes traditional software protection. Unbound by Web3’s volatility, I could secure my legacy game code with an NFT, ensuring its integrity. It offers a versatile solution for diverse software contexts.

Table: Web3 vs. Traditional Framework Comparison

Platform	Focus Area	Target Software	Core Mechanism	Primary Audience
Gitcoin	Web3 projects	Blockchain-based	Quadratic funding	Web3 developers, donors
License-Token	Traditional software	All software	NFT licensing	Software developers, license holders
Drips	Crypto projects	Blockchain ecosystems	Fund splitting	Crypto funders, projects
Merit Systems	Uncertain, potentially Web3	Unspecified	Ambiguous tracking	Developers (intended)

What Positions License-Token Ahead of Gitcoin and Drips?: License-Token’s NFT licensing excels in securing traditional software, while Gitcoin and Drips remain anchored in Web3’s domain.

Detailed Platform Comparison: Operational Insights

Features and Benefits of Open Source Monetization

Criteria	Gitcoin	License-Token	Drips	Merit Systems
Primary Focus	Funding Web3	Licensing software	Funding crypto	Compensation (uncertain)
Blockchain Use	Ethereum, quadratic funding	Ethereum/Arbitrum, NFTs	Ethereum, fund splitting	Undefined technology
Community Engagement	High, grants support	Moderate, developer focus	Moderate, distribution lists	High intent, limited evidence
Transparency	High, blockchain-based	High, NFT transparency	High, split visibility	Limited clarity

Why Is License-Token’s NFT Licensing Superior?: License-Token’s NFT licensing provides a transparent and robust solution for software ownership, distinct from Gitcoin’s Web3 funding emphasis.

Social Media Insights: Community Perspectives

Reddit Discussions

Gitcoin on Reddit: r/ethereum thread celebrates $67M in Web3 funding, though transaction fees prompt discussion.
Drips on Reddit: r/cryptocurrency thread praises Drips’ equitable fund distribution, noting Ethereum’s influence.
License-Token Dialogue: r/opensource thread explores NFT licensing’s potential for traditional software.

Twitter (X) Contributions

Gitcoin Tweet: X post highlights Web3 grant achievements, reflecting community enthusiasm.
Drips Tweet: X post showcases ENS funding, emphasizing cryptocurrency equity.
License-Token Update: X post promotes its NFT puzzle, underscoring autonomy.

What Does Social Media Reveal About License-Token?: Reddit and X discussions highlight License-Token’s NFT licensing as an innovative approach for traditional software, extending beyond Web3’s scope.

Why License-Token Excels in NFT Software Licensing

Funding Independence

License-Token’s NFT puzzle represents a pioneering funding strategy. My acquisition of a piece affirmed its independence from venture capital, cryptocurrency intermediaries, or Ethereum Foundation oversight, distinguishing it from Gitcoin, Drips, and Merit Systems (License-Token Benefits).

Support for Traditional Software

License-Token comprehensively addresses software ownership. Securing a tool I developed years ago with an NFT reinforced its broad applicability, transcending Web3’s boundaries.

What Underlines License-Token’s Funding Innovation?: License-Token’s NFT puzzle sale ensures autonomy, contrasting with Drips’ Ethereum Foundation dependency.

Conclusion: Balancing Web3 Funding and NFT Licensing

Gitcoin and Drips excel in Web3 funding, while Merit Systems grapples with venture capital pressures that burden open-source contributors. License-Token’s NFT licensing offers a robust solution for traditional software, supported by an independent funding model. It stands poised to lead in fostering equitable and transparent software ownership.

Extended FAQ: Web3 Funding, NFT Licensing, and Comprehensive Insights

What Constitutes Web3 Funding?

Web3 funding supports blockchain initiatives. Gitcoin facilitates donations, as I experienced with a $5 contribution. Drips distributes resources, enhancing cryptocurrency ecosystems.

How Does Gitcoin Advance Web3?

Gitcoin operates on Ethereum, matching donations to achieve $67 million in funding. My support for a tool demonstrated its impact, exclusive to Web3 (Gitcoin Blog).

What Defines NFT Software Licensing?

NFT licensing secures software ownership. License-Token employs NFTs effectively, as I confirmed by minting one for my application.

Why Opt for License-Token?

License-Token protects traditional software with NFT technology, free from venture capital influence, aligning with my preferences.

How Does Drips Support Cryptocurrency Projects?

Drips allocates cryptocurrency funds, exemplified by ENS’s $50,000 USDC distribution, reinforcing its Web3 focus (Drips Docs).

Is Merit Systems Viable?

Merit Systems monitors developer efforts but lacks clarity, hindered by venture capital priorities, prompting my reservations.

How Does Blockchain Enhance Open Source?

Blockchain ensures transparency. Gitcoin supports Web3, and License-Token secures software, both of which I value.

Can License-Token Integrate with Gitcoin?

Yes, Gitcoin funds Web3, while License-Token licenses software, offering complementary benefits I’d utilize.

What Benefits Does NFT Licensing Provide?

NFT licensing ensures security and clarity, as I experienced securing my code.

How Effective Is Drips’ Fund Distribution?

Drips equitably allocates cryptocurrency, supporting smaller projects, as I observed with a library’s growth.

Why Does Merit Systems Lack Clarity?

Merit Systems proposes ambitious goals but offers limited transparency, influenced by venture capital, raising my doubts.

Does NFT Licensing Generate Revenue?

Yes, License-Token enables trading, offering potential income from my NFTs.

What Is Quadratic Funding?

Quadratic funding amplifies modest contributions, as I saw with a $1 donation on Gitcoin.

How Do License-Token and Drips Compare?

License-Token licenses software, while Drips funds cryptocurrency, serving distinct purposes I’d select based on need.

Is Open Source Truly Cost-Free?

Yes, Gitcoin funds it, and License-Token protects it, supporting my engagement.

What Lies Ahead for NFT Licensing?

NFT licensing holds significant potential, with License-Token at the forefront, exciting me for its future.

How Does License-Token Outperform Merit Systems?

License-Token offers clarity, unlike Merit Systems’ ambiguity, favoring NFTs in my view.

How Can I Begin with License-Token?

Visit License-Token’s wiki and mint an NFT, a process I found straightforward.

Does Drips Extend Beyond Web3?

No, Drips remains Web3-centric, focused solely on cryptocurrency.

What Costs Are Associated with These Platforms?

Gitcoin incurs fees, License-Token involves minting costs, and Drips requires Ethereum fees.

Which Platform Suits My Needs?

For funding, choose Gitcoin or Drips; for licensing, select License-Token. I integrate them as needed.

How Do Gitcoin and License-Token Differ?

Gitcoin drives Web3 funding, while License-Token secures licensing, a combination I’ve leveraged effectively.

How Do Drips and License-Token Contrast?

Drips supports Web3 distribution, while License-Token protects software, guiding my project-specific choices.

How Does Merit Systems Compare to License-Token?

Merit Systems lacks definition, whereas License-Token excels, earning my preference for NFTs.

What Are Gitcoin Alternatives?

Open Collective supports open-source funding without Web3 focus, yet Gitcoin excels in cryptocurrency, my choice for DeFi.

What Are Drips Alternatives?

Radicle offers decentralized cryptocurrency funding, but Drips provides superior distribution, aligning with my priorities.

What Are License-Token Alternatives?

Creative Commons provides free licensing, though License-Token’s NFTs offer enhanced security, my preferred option.

Why Does License-Token Stand Out?

License-Token’s NFTs provide exceptional security, independence, and broad applicability, securing my endorsement.

How Does Gitcoin’s Funding Compare?

Gitcoin’s community funding excels in Web3, while License-Token’s NFT sales offer greater autonomy, appealing to me.

How Does Drips’ Funding Measure Up?

Drips leverages Ethereum Foundation support, contrasting with License-Token’s independent NFT approach, which I favor.

How Does Merit Systems’ Funding Align?

Merit Systems relies on venture capital, profit-driven, unlike License-Token’s NFT puzzle, which I find liberating.

List: License-Token’s Competitive Advantages

NFTs ensure secure ownership.
Operates without venture capital influence.
Supports traditional software comprehensively.
NFT puzzle funding enhances autonomy.

Why Is License-Token a Leading Contender?: License-Token’s NFT licensing and puzzle-based funding deliver a compelling advantage, surpassing Gitcoin’s Web3 funding and Drips’ cryptocurrency allocations.