Humanitarian Aid
October 20, 2026
Updated

Crypto Altruists Episode 271 - The Great Funding Reset: Lessons from Web3 Public Goods Funding, Humanitarian Aid Cuts, and What Comes Next

By:
Drew Simon
In episode 271 of Crypto Altruists, we explore the Great Funding Reset: a cooling in Web3 public goods funding and the largest drop in international aid on record. We look at how we got here, the funding innovations still working, from yield-based giving to pooled funds, and practical strategies for impact organizations.
Episode 271 - The Great Funding Reset: Lessons from Web3 Public Goods Funding, Humanitarian Aid Cuts, and What Comes Next, with Drew Simon, Founder of Crypto Altruists, against a backdrop of a dark storm breaking to reveal sun.

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For episode 271 of the Crypto Altruists podcast, we explore what we’re calling “The Great Funding Reset,” and what it means for anyone building for impact right now.

If you work in the impact space, whether you're building in Web3, running a nonprofit, or working anywhere in international development, you've probably felt it: the ground has shifted. The Web3 public goods funding boom of a few years ago has quieted down considerably, and just this month, a funding platform that many projects relied on shut down. At the same time, outside of Web3, international aid budgets are being cut at a scale we've never seen before, with official development assistance experiencing the largest drop on record.

In this episode, we look honestly at how we got here, from the boom years of ICOs, NFT fundraising, quadratic funding, and retroactive public goods funding, to the quieter, more uncertain landscape of today. We explore the common thread linking both the Web3 and traditional aid funding crises, and the challenges this uncertainty creates for builders, nonprofits, and NGOs around the world.

But this isn't a doom and gloom episode. Some of the most resilient funding models we've ever seen are being built right now. We explore innovations from across the funding world, including trust-based philanthropy, pooled funds that are keeping vital programs alive, pre-arranged financing for anticipatory action, public investment in digital public goods, solidarity levies, participatory grantmaking, and Web3 models like yield-based giving and streaming funds. And we close with practical strategies every impact organization can use to navigate this challenging moment.

In today's discussion you'll learn:

🌊 Why impact builders are facing two funding storms at once: a cooling in Web3 public goods funding, and the largest drop in international aid on record

🔄 How public goods funding has evolved, from the boom years of ICOs, NFTs, and quadratic funding to the quieter, more uncertain landscape of today

🌱 The funding innovations that are still working, from yield-based giving to streaming funds and community-owned models

🧭 Some strategies for impact organizations navigating this challenging environment

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CTAs from Episode:

🤝 Explore AI & Web3 consulting opportunities with Crypto Altruists: https://www.cryptoaltruists.com/consulting

🧰 Check out the Web3 Impact Toolkit: cryptoaltruists.com/web3-impact-toolkit

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Key Takeaways

🌊 Two storms, one lesson: concentrated funding is fragile funding: Impact builders are facing two funding storms at once. In Web3, the public goods funding boom has cooled, and the recent shutdown of a funding platform many projects relied on left a lot of people hurting. Outside of Web3, international aid has seen the largest drop on record, as governments shift priorities toward defence and domestic spending. These crises have very different causes, but they share a common thread: both systems depended too heavily on a small number of volatile sources. When a handful of token treasuries, platforms, or donor governments change course, everyone downstream feels it at once. The lesson for the whole sector is clear. Resilient funding needs to be more diverse, more predictable, and more verifiable than what came before.

🌱 The future of funding is already being built: Despite the challenges, people around the world are inventing better ways to fund impact. Foundations are giving more, and with fewer strings attached, through flexible, trust-based funding. Pooled funds and matchmaking efforts have kept life-saving programs running after aid cuts. Pre-arranged financing means money is ready before a predictable disaster strikes, rather than weeks after. Governments are starting to treat digital public goods as infrastructure worth investing in, and new solidarity levies could create fresh, predictable sources of funding. In Web3, yield-based giving, streaming funds, and conviction voting are tackling the same problems from a different angle. And communities are leading too, through participatory grantmaking, giving circles, and mutual aid. None of these is a silver bullet, but together they show what’s possible.

🧭 Resilience is built, not wished for: For impact organizations, getting through this moment means going beyond the familiar advice and focusing on the how. Diversify by type of funding, not just by the number of funders, so your income streams don't all fall at once. Nurture funder relationships year-round, explore earned income, and make your impact easy to verify. This is a difficult season, but a reset isn't an ending. It's a chance to rebuild on stronger foundations.

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DISCLAIMER

While we may discuss specific web3 projects or cryptocurrencies on this podcast, please do not take any of this as investment advice, and please make sure to do your own research on potential investment opportunities, or any opportunity. We host a variety of guests on this podcast with the sole purpose of highlighting the social impact use cases of this technology. That being said, Crypto Altruism does not endorse any of these projects, and we recognize that, since this is an emerging sector, some may be operating in regulatory grey areas, and as such, we cannot confirm their legality in the jurisdictions in which they operate, especially as it pertains to decentralized finance protocols. So, before getting involved with any project, it’s important that you do your own research and confirm the legality of the project. More available HERE.