Crypto-Economic Analysis of Web3 Funding Programs Using the Grant Maturity Framework

2025-05-11

AI Summary

Web3 grant programs frequently suffer from immature mechanisms and a lack of rigorous effectiveness evaluation. To address this gap, we introduce the concept of “grant maturity” and propose the Grant Maturity Framework (GMF)—the first quantifiable, stage-based framework for systematically assessing grant programs across three dimensions: structure, governance, and impact. GMF integrates qualitative case analysis, quantitative metric modeling, and a tiered maturity classification scheme. We empirically apply GMF to four major Ethereum Layer-2 grant initiatives—Arbitrum, Optimism, Mantle, and Taiko—categorizing them into four maturity stages: Experimental, Foundational, Operational, and Advanced. Our analysis identifies Arbitrum’s LTIPP and Optimism’s Mission Rounds as benchmark programs exhibiting high maturity. This work fills a critical void in the systematic evaluation of Web3 grant efficacy and provides both theoretical foundations and practical guidelines for developing user-centric grant management platforms.

Technology Category

• Search and Optimization: Other Foundations of Search & Optimization
• Machine Learning: Efficient ML / Green AI
• Game Theory and Economic Paradigms: Mechanism Design

Application Category

• Responsible Web: Consent frameworks and practices on the web
• Graph Algorithms and Modeling for the Web: Foundation models and LLMs for Web-related graphs
• Systems and Infrastructure for Web, Mobile and WoT: Web performance, measurement, and characterization

Abstract

Web3 grant programs are evolving mechanisms aimed at supporting innovation within the blockchain ecosystem, yet little is known on about their effectiveness. This paper proposes the concept of maturity to fill this gap and introduces the Grant Maturity Framework (GMF), a mixed-methods model for evaluating the maturity of Web3 grant programs. The GMF provides a systematic approach to assessing the structure, governance, and impact of Web3 grants, applied here to four prominent Ethereum layer-two (L2) grant programs: Arbitrum, Optimism, Mantle, and Taiko. By evaluating these programs using the GMF, the study categorizes them into four maturity stages, ranging from experimental to advanced. The findings reveal that Arbitrum's Long-Term Incentive Pilot Program (LTIPP) and Optimism's Mission Rounds show higher maturity, while Mantle and Taiko are still in their early stages. The research concludes by discussing the user-centric development of a Web3 grant management platform aimed at improving the maturity and effectiveness of Web3 grant management processes based on the findings from the GMF. This work contributes to both practical and theoretical knowledge on Web3 grant program evaluation and tooling, providing a valuable resource for Web3 grant operators and stakeholders.

Problem

• Evaluating effectiveness of Web3 grant programs
• Introducing Grant Maturity Framework (GMF) for assessment
• Comparing maturity of four Ethereum L2 grant programs

Innovation

• Introduces Grant Maturity Framework (GMF) for evaluation
• Applies GMF to assess four Ethereum L2 programs
• Proposes Web3 grant management platform for maturity