Merit Systems, a startup focused on changing the economics of open source software development, has raised $10 million in a seed funding round co-led by Andreessen Horowitz’s cryptocurrency fund and Blockchain Capital.
Merit is developing a contribution protocol for open source projects, a system that tracks contributions and rewards contributors in proportion to the value they create.
According to its founders, the protocol seeks to create a more sustainable economic model for open source projects. The core idea is to evaluate and reward contributors based on the value they add to the project, moving away from reliance on volunteer contributions or corporate support that often determine project direction.
“Merit adds rich property information to software version control systems like GitHub. This allows capital sources to channel funds into the codebase and provide incentives directly to builders,” the project said in a note shared with The Block.
The founders, including Ryan Sproule, Sam Ragsdale, and Mason Hall, have notable technology and crypto landscape backgrounds. Sproule previously worked at Blockchain Capital, while Hall and Ragsdale previously worked on the investment team at Andreessen Horowitz.
The $10 million seed round was announced at a post-funding valuation of $55.5 million.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2024 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.