Merit Systems just pulled $10 million in funding from Blockchain Capital and 16z Crypto.
By Godfrey Benjamin
Edited by Marco T. Lanz
Updated
3 mins read
Merit Systems, a company focused on technology solutions, has caught the attention of the tech community with a bold initiative. Announced in an X post today, the company revealed it secured $10 million in funding from heavyweights like a16z Crypto and Blockchain Capital.
Excited to announce that we at @merit_systems have raised $10m from our friends at a16z crypto and Blockchain Capital to accelerate what we are calling Open Source Capitalism. pic.twitter.com/98sbRCufaz
— Mason Hall (@0xMasonH) January 16, 2025
This fund aims to drive a new economic model called Open Source Capitalism. This initiative seeks to create a sustainable and rewarding ecosystem for open-source contributors and projects.
Open-source innovations are becoming the backbone of modern technology.
They power websites and are known for enabling unlimited digital innovations. Yet, despite their critical importance, open-source platforms are still greatly underfunded and depend mainly on volunteers to keep it going.
Open source software is eating the world. It empowers every major company – and supports trillions of dollars of value every year. It’s a lever on the world – the way to make more with less. What if we could give it superpowers?
— Mason Hall (@0xMasonH) January 16, 2025
Many popular software programs are built using code managed by small teams or even single developers. These developers often lack the support or credit they deserve. This creates a weak foundation for the tech world, as an overstretched few support essential tools.
Many projects have attempted to reward open-source contributions to address this long-standing issue. While the idea of retroactive funding is promising, none have achieved success at scale yet.
Merit Systems is trying something completely new. The startup is creating a system that gives contributors credit and rewards based on their work’s value. This aims to change the way open-source projects are supported and valued.
Imagine a world where code projects work like companies, acting as the main building blocks for networks. That is the vision Merit Systems is bringing to life.
Securing the backing of a16z Crypto proves Merit Systems is gaining the right traction. The venture capital firm is known to back innovative platforms that are changing the entire Web3 ecosystem.
Merit Systems’ protocol aims to create a more cooperative and flexible internet by ensuring contributors are paid fairly for their work. With $10 million in fresh funding and a strong team behind it, the startup is ready to revolutionize the open-source economy.
This is not just about funding; it is a call for action. Merit Systems is working towards a future where the internet’s key infrastructure is not based on unpaid labor. Instead, it aims for it to grow fairly and sustainably.
Sam Ragsdale and Ryan Sproule are two skilled technologists and investors behind this innovative project. Both have a strong history in open-source development. Sam is a former engineer and investor at a16z.
He is well-known for his work on Jolt, a zero-knowledge virtual machine (zkVM). His knowledge of open source and blockchain has made him a leader in the field. Ryan, who worked at Blockchain Capital, has spent the last decade building open-source projects with Sam. He combines his engineering skills with strategic vision. Mason Hall, also from a16z, is joining the team. His technological skills and investment expertise will help scale Merit Systems to new heights.
Meanwhile, the push to sustain and reward open-source software is part of a broader trend in the tech industry. This movement includes initiatives like GitHub Sponsors, Open Collective, Story, and other funding platforms.
This reflects a shift toward recognizing the value of open-source innovations and creating systems to support its long-term growth and viability. Beyond Merit Systems, other innovators in Web3 are also injecting funds to capture the next wave of users.
As reported earlier by Coinspeaker, Ronin Network has committed $10 million to back innovators within its ecosystem. Other bigger outfits like eToro are also looking to raise funds through IPOs in the US.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
