Ethereum 2.0 Validator Grant

by Fugue Foundation 3 years ago 3 min read

Executive Summary

The Fugue Foundation (FF) would like to grant the staking rewards it receives from running its Ethereum validator nodes to two 501(c)(3) effective altruism nonprofit organizations (EANO). The grant donation is estimated at around $5000 per year per organization and is paid on a quarterly basis in ether (ETH) to an Ethereum wallet controlled by the EANO. To apply, the EANO needs to submit a form and designate a volunteer or sponsor to run a testnet Ethereum validator node on behalf of the EANO, which FF will assist in establishing. This latter requirement is to encourage knowledge and professional development of open source, decentralized technologies such as blockchain.

Let's start with the 'why?'

FF believes in the power of decentralized, open source blockchain technology to affect positive change in the world. More specifically, we believe the Ethereum ecosystem is presently one of the best platforms for achieving this goal. In order to make its network more scalable, more secure, and more sustainable, Ethereum is currently undergoing a multi-phase, multi-year upgrade of its protocol. The Fugue Foundation is fully supportive of this upgrade and is running two validator nodes to add decentralized compute power to the network. In addition to earning staking rewards to be used for charitable purposes, the act of running and maintaining a validator node is a unique educational opportunity to individuals interested in pursuing a techological career. This grant seeks to combine these two aspects of the process - staking rewards and technical knowledge - and direct their benefits towards helping an effective altruism nonprofit organization (EANO).

eth-launchpad

What is the grant

FF wishes to donate the staking rewards it receives from the two validator nodes it maintains to two separate EANOs. These rewards would be paid in ether (ETH) on a quarterly basis to the Ethereum wallet controlled by the EANO. Though impossible to quantify exactly due to various network and market considerations, at time of writing for one validator this amounts to approximately 3 ETH or $5000 USD per annum.

Eligibility

The EANO must be a registered, 501(c)(3) compliant nonprofit.
In addition to providing funds to the EANO, FF sees this grant as an opportunity to promote education and career enhancing skills within the open source blockchain community. Thus, a primary requirement for receipt of this grant is that the EANO identify individuals - either within the EANO itself or external volunteers affliated with or supportive of the EANO - to run their own testnet validator node (i.e., the ether involved has no market value). Provided they maintain the node, the EANO will continue to receive the staking rewards from FF. Let's unpack this a little more.

FF will assist with financial costs of establishing the node, a cost we estimate to be between $500-$700. The specifics will be mutually agreed upon between FF and the EANO and depend on factors such as available hardware and reliability of wifi/electricity in location of the node. FF will provide mentorship for the setup and/or help direct those running/maintaining the node toward appropriate resources.
The EANO should choose individuals to manage their node that would directly benefit from the learning experience, whose careers may be enhanced from this knowledge, are self-motivated, and are indeed passionate about decentralized blockchains and open source projects. An ideal candidate might be, for example, some university students pursuing a technical field, who are passionate about effective altruism, and are looking for a unique way to volunteer their time and skillset.

How to apply

Complete this form to apply!

We recognize that some of this grant proposal includes terms/technologies that may be unfamiliar to an EANO. Indeed, this topic is complicated even for the most technically proficient people. We are going about this with an open mind and a presumption of good faith. Provided that the EANO selects reliable individuals that fit the above criteria as their technical representative, there is little work required on the part of the EANO other than deciding what to do with the ETH staking rewards they receive from FF. If you have any questions, please include them in the application form (it's short) and we'll be happy to follow up.