PGN: A new layer of Ethereum focused on funding public goods

What is Public Goods Network and why was it created?

Public Goods Network (PGN) represents an innovative approach to funding public welfare within the Ethereum ecosystem. It is a Layer 2 network built on the OP Stack architecture, developed and incubated by Gitcoin in collaboration with key players in the ecosystem including Protocol Guild, Public Nouns, Clr.fund, Giveth, Hypercerts, Protocol Labs, Octant, Eco, and Hedgey.

In the traditional world, public goods represent infrastructure accessible to everyone without restrictions – parks, energy grids, public libraries. PGN brings this concept into the blockchain environment, where it becomes a mechanism for sustainable funding of projects focused on public welfare.

How does funding through PGN work?

A key element of the PGN model is a revolutionary way of handling transaction fees. Each operation in the network incurs costs for the sequencer – a standard mechanism of Layer 2 solutions. However, PGN redirects the majority of these fees generated by user transactions directly to the funding of public goods and related projects.

In this way, network participants automatically contribute to the development of public welfare through regular usage. It is not about additional contributions but an elegant redirection of existing costs toward useful projects.

Development: From transactions to sustainable revenues

The PGN network has already seen significant usage – deposit and withdrawal transactions have exceeded 100,000. Gitcoin officially announced it as part of its 18th round of initiatives to support public goods.

The future offers even greater potential. After the approval of EIP-6969, PGN will support contracts with guaranteed revenues (Contractual Secured Revenue – CSR). This mechanism will allow smart contract developers to claim a certain percentage of all transactions made by users interacting with their applications.

How does CSR change the economics of dApps on PGN?

Contractual secured revenues create a self-sustaining ecosystem. The more decentralized applications (dApps) are deployed on PGN, the more users actively use them, and the more income is generated for their developers and for funding public goods. This is a positive feedback loop: more dApps → more users → more fees → more funds for development.

Why enter PGN now?

The project is still in the early stages of development, presenting an opportunity for early adopters. Compared to traditional investment approaches, there is room to focus on a longer-term engagement with the network without constant fear of FOMO (FOMO). Any interaction with PGN currently contributes to shaping its future economy and infrastructure.

PGN is not just a new technology – it is a new way to fund things that are important for society through the network’s own operation.