🪙 vGrant - Fund-on-Merge Crypto Bounty System

ETHGlobal Prague 2025 Submission

Grants with autonomous, trustless payouts
Zero approvals · PR theft protection · First-merge-wins mechanics

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vGrant is a decentralized grant platform that enforces Fund on Merge consensus (See below), automating crypto payments to developers upon first valid code integration while eliminating payment delays, manual approvals, and PR theft through zero-knowledge verification.

Fund on Merge Concensus

graph LR
    F[💸 Funder]
    D[👨‍💻 Developer]

    F -->|1 - Fund Grant| C[📜 Smart Contract]
    D -->|2 - Submit PR| G[🐙 Git]
    G -->|3 - First Merge| C
    C -->|4 - Auto-Payout| D
    
    style C fill:#e6f7ff,stroke:#1890ff,stroke-width:2px
    style F fill:#f6ffed,stroke:#52c41a
    style D fill:#fff7e6,stroke:#fa8c16
    style G fill:#f9f0ff,stroke:#722ed1
    classDef default fill:none,stroke:none,color:black

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User Story

Alice 👩‍💼 needs a Blender feature her team can't build. She:

1. Creates GitHub issue #1234
2. Highlight by funding USDC grant (Vault escrow) with deadline

Bob 👨‍💻 wants paid open source work. He:

1. Finds Alice's issue via grant board
2. Submit a solution via Pull-Request (Code + tests + docs).

Maintainer 🤵‍♂️:

1. Reviews Bob's Pull-Request against standard
2. Merges on approval → auto-releases payment
3. Receives review fee (5-15% of grant) → funds project treasury

🚀 How VGrant Works

⭐ Funder Journey

A Funder creates grant for desired features:

graph LR
    A[💸 1. Create Grant] --> B[Define Specs & Deadline]
    B --> C[🔒 2. Lock USDC in Escrow]
    C --> D[🔄 3. Open Grant]
    D --> E{Resolution}
    E -->|First Valid Merge| F[🟢 4a. Auto-Payout]
    E -->|Deadline Reached| G[🔴 4b. Auto-Refund]
    F --> H[✅ Grant Closed]
    G --> H

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1. Create Grant : Remunerate Open Source Projects and Contributors

struct Grant {
    address payable funder;
    address token;  // USDC: 0xA0b8... 
    uint256 amount;
    uint256 deadline;
    bool isClaimed;
}

2. Funds Locking

• USDC held in audited vault contract
• Immutable until resolution conditions met

3. Automatic Resolution

• 🟢 Success: Contract auto-sent to first merged PR
• 🔴 Timeout: Funder refund after deadline

👨‍💻 Developer Journey

A Developer can work on available granted issues. The first valid merge claim the Grant 💸

flowchart LR
    A[👨‍💻 1 - Find Grant] --> R[🛡️ 2 - Link Git account and wallet using **vGrant**]
    R --> B[3 - Submit PR with Solution]
    B --> C[4 - Maintainer Reviews]
    C --> D{5 - Approved?}
    D -->|Yes| E[6 - Merge PR]
    D -->|No| B

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✨ Core Innovation

🛡️ PR Theft Protection

By using the Web Proof technology of vlayer, we ensure a Git Account is linked to a Wallet Address by enforcing a registration of the developer before a valid merge (Step 2. in above diagram). We use our front-end to simplify the interaction with our smart contract.

We enables a fluid User Experience for a Zero-Knowledge-Proof Verification (ZK-proof), opposing Cryptographical RSA challenge using Git SSH keys, which may be challenging for casual user.

To use vGrant, you should:

• Install vlayer extension (Only for Chromium).
• Install compatible wallet (e.g.: Metamask).
• Follow step on vGrant website.

⚠️ It is recommended to take a look at Security Consideration before using Web Proof technology.

graph LR
    A[Resolved Issue] --> B{Issuer registered on vGrant ?}
    B -->|Valid Linked Git Account| C[💸 - Instant USDC Payout]
    C --> L[✅ Grant Claimed]
    B -->|Missing Account| D[🛑 - Claim Rejected]
    D --> M[⚠️ Grant Pending - Alert Maintainers]

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• ZK-Proof Verification (VLayer integration)

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🔑 Key Benefits

Feature	💸 Funder	👨‍💻 Developer
Winner Selection	Algorithmic - no bias	Meritocracy win
Fund Handling	Reclaim anytime post-deadline	Instant payout on merge
Technical Focus	Define problem → fund → wait	Find issue → code → get paid

✅ When Grants beat classic models:

• Funder: Pays only for results (no hourly fees/management)
• Developper: Earns remuneration and reputation
• Blender: Gets vetted code faster

❌ When Traditional Wins:

• Complex projects: Poor for multi-phase work needing iteration
• Relationship-dependent: Bad when ongoing collaboration required
• Sensitive work: Unsuitable for proprietary/NDA-protected code
• High-support features: Suboptimal if post-launch maintenance needed
• Niche skills: Less effective than targeted freelancer recruitment

When to use Bounties ?

⭐ For Funder

• Scope is clear & achievable (1-3 week tasks)
• Seeking specialized skills for non-core features
• Budget certainty outweighs timeline flexibility
• Funds released only for verified working solutions

👨‍💻 For Developper

• Be rewarded for your Open Source Work in your Free Time
• Build a Reputation with contributions (Git/NFTs)
• Compete on skill, not location
• Access global opportunities with no interviews

🤵‍♂️ For Maintainer

• Project benefits from new vetted contributions
• Quality control is enforced (verified before merge)
• Earn sustainable funding (percentage of bounties)
• Grow ecosystem through new contributors

🌐 Why Decentralizing it ?

• 0% platform fees (vs. 20% on Upwork/Fiverr)
• Decentralized: No geo-restrictions/censorship
• Transparency: Verifiable on-chain contract

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🏆 Prize Integrations

📽️ Partners

VLayer provides verifiable data infrastructure that bridges Web2 and Web3, enabling developers to integrate and verify real-world data — like web and email proofs — into Ethereum smart contracts using zero-knowledge proofs and familiar tools like Solidity.

• ZK-verified contributor identities
• Anti-sybil protection for submissions

🏅 Prize Submissions

Prize	Category	Value
VLayer	Most inspiring use	$4,000
VLayer	Best Web Proofs	$2,000

Potential upgrade

• Implement decentralized database for front-end caching (using IPFS)
• Manage multiple concensus - Fund on merge / Fund on merge and Approval (Grant / Free-lance concensus)
• Add other Git service (Gitlab, ...)
• Add developper portfolio
• Priority ranking in Project
• Add early bonus in the protocol