DAOs & Governance
February 9, 2026
Updated

Octant v1 vs. v2: The Evolution of Decentralized Public Goods Funding on Ethereum

By:
Tereza Bizkova
Compare Octant v1 vs. v2: See how Ethereum's public goods funding protocol has evolved from an innovative funding experiment into scalable DeFi and DAO treasury infrastructure.
An infographic showing the differences between Octant v1 and v2.

Octant has been one of the most innovative experiments in sustainable public goods funding on Ethereum, using staking yield to fund community-chosen projects without depleting principal. Now, the protocol is evolving.

Octant v1 proved that staking rewards could power decentralized funding through fixed epochs and GLM token locking. Octant v2 takes the model further, opening up to multiple funding sources, continuous allocations, and integration with DeFi protocols and DAO treasuries.

This infographic breaks down the key differences between the two versions, and the implications for the broader Ethereum ecosystem.

Octant v1 Overview

TLDR

An early Ethereum-based experiment testing whether staking rewards could fund public-good projects in a community-driven way.

Funding Source

A single funding source, using staking yield from the Golem Foundation’s ETH and distributing it in fixed “epochs” (3-month rounds).

Participation

Participation through GLM token locking, with users earning rewards and choosing whether to donate, withdraw, or a mix of both.

Funding Allocations

Funding decisions made during fixed rounds, with quadratic funding used to match donations and amplify broad community support.

Ecosystem Role

A system designed to test assumptions about participation, incentives, and decentralized funding through real-world use and impact.

Octant v2 Overview

TLDR

A mature Ethereum-native system designed to make public-goods funding a built-in part of DeFi and DAO treasuries.

Funding Source

Multiple funding sources, using yield generated from assets deposited by individuals or DAOs on an ongoing basis.

Participation

Participation through capital deposits and on-chain allocation, where communities help decide how yield is distributed.

Funding Allocations

Funding decisions made through continuous or scheduled allocations, defined by on-chain rules set by each ecosystem.

Ecosystem Role

A system designed to reliably route ongoing yield to public goods at scale, as part of long-term financial and treasury strategies.

Check out our Octant Ecosystem Hub to learn more!

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