Shocking news came from Gitcoin co-founder Kevin Owocki
In an open statement, he announced a tough decision that had to be taken: Gitcoin officially shut down Grants Lab, their main software development unit. “Today, I am sharing one of the hardest decisions we have had to make since Gitcoin was founded,” Owocki wrote.
He added that several talented and mission-aligned team members had to part ways, after a thorough discussion with them.
Today, I’m sharing one of the most difficult decisions we’ve had to make since the inception of Gitcoin.
We’ve made the call to wind down Grants Lab, the primary software development unit behind Gitcoin, and are parting ways with several deeply talented and mission-aligned team…
— Kev.Ξth (@owocki) April 25, 2025
Grants Lab’s Struggle Amid Web3’s Rapid Transformation
Undeniably, the rapid changes in the Web3 world are one of the main factors behind this decision. On the other hand, Gitcoin sees that the Layer 2 ecosystem is maturing, new coordination is emerging, and many new players are starting to enliven the public funding space.
Furthermore, the departure of several key Grants Lab members has made the team’s direction less solid, making it difficult to maintain the work culture that had previously been built.
Perhaps the most difficult is the fact that Grants Lab has not found a sustainable financial path. While Gitcoin remains active overall through programs such as Gitcoin Passport (now known as Humn Passport), Gitcoin Grants Program, KERNEL, Public Works, and Allo Capital, the Grants Lab expenses have exceeded their ability to survive. With all of this in mind, Gitcoin has decided not to submit a new budget for the second half of 2025.
Gitcoin Refocuses on Core Programs
However, this does not mean that Gitcoin is giving up. Imagine a startup that initially had many business lines, then chose to strengthen one of its flagship products to stay relevant amidst the competition.
More or less, that is Gitcoin’s current strategy. They will continue to run the Gitcoin Grants program with a leaner team, while continuing to manage their existing asset portfolio.
While navigating this transition, Gitcoin has not forgotten about supporting its former employees. They are providing severance pay, continued token vesting, and career assistance such as personal recommendations from team leaders. On the other hand, existing programs are still receiving attention.
For example, on February 26, 2025, Gitcoin launched the ZKsync Community Program to encourage the development of zero-knowledge technology. In addition, last March they also successfully distributed funding to DeFi and Gaming projects in the Avalanche ecosystem.
Not only that, Gitcoin had actually prepared a new direction. On December 19, 2024, they released their 2025 funding strategy which focused on decentralization, efficient distribution of funds, and support for Web3 public infrastructure. This shows that behind the closure of Grants Lab, Gitcoin still maintains its adaptive spirit.
Market Reactions and Future Outlook
Even so, the effects of this announcement are still felt. Gitcoin’s native token, GTC, has fallen 1.93% in the last 24 hours to about $0.3397. But interestingly, in the last 7 days, GTC has actually increased sharply by 32.74%.
Gitcoin also promised to continue to provide updates to the community, including the big GG24 event which is still scheduled to be present. For anyone with questions or clarification, Owocki opened up a direct line of communication via DMs and their governance forum. One chapter is over, but Gitcoin clearly has a long way to go.