Bitcoin receives $20 million annually in donations to develop its code

Reliance on donations is an issue that open source software generally faces, and Bitcoin is no exception to this reality. This was stated by American developer and cypherpunk, Jameson Loeb, in a recent blog post, Cypherpunk Cogitations.

Lopp, a well-known participant in the Bitcoiner ecosystem, said that the Financial support for Bitcoin code maintenance Other free and open source software “has a complex set of problems”.

The topic was discussed as part of the eighth edition of “Private High-Level Discussions” called The Satoshi Roundtable, which includes developers, CEOs, founders, scientists, academics and investors, according to its website. This is the annual “non-conference” organized by Bruce Fenton, CEO of Chainstone Labs.


In his article, Jameson Loeb shares the position that, In the long run, it may not be sustainable to fund every open source project with donations. In this sense, he listed some of the alternatives discussed at the meeting, such as the issuance of bonds, the creation of a self-sufficiency fund, or the use of state incentive programs.

highlight it Bitcoin financing will always be controversial, because it raises concerns that funders may pressure developers to “steer development in a direction that is beneficial,” regardless of whether it affects others in the ecosystem. This is why the best formula is for financing to be granted through “unconditional” contracts.

Developer Jameson Loeb believes that major bitcoin miners should contribute to funding the development and maintenance of the code.

“It seems that most developers Bitcoin is funded by charities or exchanges (which tends to be the most profitable company in the industry),” the article says. In Loeb’s opinion, major bitcoin miners could follow suit.

Loeb noted that Bitcoin software development currently receives about $20 million annually in donations. However, as reported by CriptoNoticias, this number does not compare to the amounts received by private projects with less activity in their Github repositories, which manage more than 150 million USD annually.

Bitcoin competes for talent

On the other hand, the developer commented that other than financing, The main obstacle is the talent available in programming. Loeb noted that “from a talent standpoint, bitcoin is competing against almost every industry” now that they are all demanding developers.

Another topic discussed was the controversy over the protocol’s robustness, which shifts between sticking to the existing model or introducing new features that could add value, but also potential weaknesses. According to the developer, the alternative would be to “focus more on funding the development of Layer 2 technology, where consensus changes are not required.”

Currently, about 10 organizations In alliance with private companies, they allocate funds to fund the development of Bitcoin. Among them are Brink, and the Foundation for Human Rights.

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