How Gitcoin Unlocks Alternative Funding Avenues for NGOs: A Case Study, The Tor Project

Written by Lina Pauline Schrott

“Gitcoin was really the starting point. We saw that the web3 funding world is both interested in privacy projects, open source software and really shares the decentralization and community values that we have. There is more than just funding. There is community support, new users, and the power to build together. It’s a great partnership.”

-Al Smith, Fundraising Director, The Tor Project


 

Take part in celebrating IDriss’ success through Gitcoin, and directly contribute to the funding of digital public goods through Gitcoin Grants. Proceeds from this NFT will go towards Gitcoin Grants’ matching pool.


Beyond Funding: Building a Community of Privacy Advocates

“For us, the realization sunk in that Gitcoin isn’t just a cryptocurrency project. It’s a project about community fundraising and resourcing decentralized communities to do their work. This value alignment is how we ended up using the Gitcoin Grants and why we stuck with it. It’s so clearly in tune with how we at Tor envision community, and how I believe that we can change traditional fundraising models to be more flexible.”

-Al Smith

For the Tor Project, the relationship with Gitcoin extends beyond mere financial support. It includes a robust exchange of knowledge and thought leadership, critical for both organizations. Gitcoin’s decentralized governance model and community-centric approach have provided a blueprint for how nonprofits can leverage blockchain technology for broader societal impact.

Through Gitcoin the Tor team got introduced to Funding The Commons events that have connected Tor with other like-minded projects and individuals, fostering a community that values digital privacy and the open internet. This network is not just a source of funding but a platform for innovation and advocacy, allowing Tor to share its expertise and learn from others in the field.

A Bit of History

Let’s back up.

You might know the Tor Project as a safe browser—safe, because rather than profiting from your data, it protects it. Tor enables anonymous, secure communication, allowing users to access and share information freely. But it is much more than just a browser. It’s a critical tool for privacy and digital freedom.

The non-profit behind Tor was conceived in 2006 as a research initiative by two MIT students and computer scientists Roger Dingledine, and Nick Mathewson, to develop technologies that promote internet privacy and security. It was initially funded by a US government grant.

Originally known as "The Onion Router," the project was developed to provide a secure means of communication, essential for activists, journalists, and individuals living under oppressive regimes. The technology uses onion routing, a method that anonymizes internet traffic by routing it through a series of volunteer-operated servers or "relays” and encrypting it every step of the way.

From just 500,000 daily users in its early days, Tor now supports millions of users worldwide. The Tor browser, launched in 2008, has been instrumental during pivotal moments like the Arab Spring and the recent Mahsa Amini protests in Iran, helping citizens circumvent censorship and share their experiences with the world.

Navigating the Funding Landscape: The Role of Gitcoin

“With the onset of geopolitical events and very agile censorship strategies that are being used by state actors, Tor needed to improve access to more nimble funding and unrestricted funds. Gitcoin Grants play a big part in contributing to that pool.”

- Pavel Zoneff, Director, Strategic Communications, The Tor Project

Operating as a non-profit, the Tor Project faces unique funding challenges. Unlike the traditional internet economy that profits from user data, Tor relies on grants and donations to fund its operations. However, traditional funding avenues can be slow and restrictive, often not aligning with the urgent needs that arise from global events and censorship tactics. This is where Gitcoin Grants has played a transformative role.

Gitcoin, known for supporting open-source and decentralized projects, introduced Tor to a new funding paradigm—one that is agile and community-driven. The partnership began in early 2021 when Scott Moore from Gitcoin reached out to help fund a Tor hackathon. This initial engagement opened doors to further collaborations, highlighting the shared values between the two organizations: a commitment to privacy, open-source development, and community empowerment.

Gitcoin Grants have provided Tor with a steady stream of flexible funding. This has been crucial for developing new technologies, such as the recently launched Webtunnel, a censorship-resistant tool designed to help users access the internet in heavily monitored regions. Unlike traditional grants, Gitcoin’s model allows for quicker disbursement of funds, enabling Tor to respond swiftly to new challenges, such as geopolitical upheavals or changes in censorship tactics.

“Individual donations are unrestricted funds, and a very important kind of support. Unrestricted funds allow us to respond to censorship events, develop our tools in a more agile way, and ensure we have reserves to keep Tor strong in case of emergencies.”

- Al Smith

Subscribe to Gitcoin
Receive the latest updates directly to your inbox.
Mint this entry as an NFT to add it to your collection.
Verification
This entry has been permanently stored onchain and signed by its creator.