Project Description
Mechanism Institute is a research initiative that shapes building blocks for digital-age institutions. We bring together thinkers and practitioners to study, develop, simulate, and deploy new on-chain mechanisms.
Our flagship project is the Mechanism Library, which features over 130 on-chain mechanisms and 300+ implementation examples and serves as a vital public resource for web3 innovators, researchers, and practitioners.
Our ongoing initiatives include:
- Restructuring the library to enhance usability, categorizing entries by function and mechanism type.
- Expanding the library with in-depth descriptions, case studies, and design considerations for each entry.
- Elevating the library’s credibility through contributions from expert practitioners, ensuring it serves as an authoritative, relevant resource.
- Developing an emancipatory pragmatic methodology for real-world application of on-chain mechanisms.
- Elaborating open-access research reports co-authored by web3 academics and practitioners. These reports explore on-chain mechanisms in various fields, including an upcoming report on public goods funding, which features a breakdown of the mechanism design used in Octant, Gitcoin, and Optimism, and suggests new mechanisms to improve their pitfalls.
Links:
Budget Breakdown
We are looking to raise $160,000 across funding sources to fund our research and operations from Q4 2024 through the end of 2025 (16 months). This budget allocation is crucial for funding a dedicated, full-time Research Manager ($7,000/mo), additional platform development ($1,250/mo), and communications & events ($2,000/mo) to increase the impact of our research.
| Milestone | Expected Outcome | Completion |
|---|---|---|
| Mechanism Library v1 Completion | Widespread awareness within web3 ecosystem of the full range of mechanisms available when designing on-chain systems, including trade-offs and case studies. | Nov 2024 |
| Mechanism Reports | High-quality research reports of on-chain mechanisms applied to different sectors, that help practitioners in those areas build effective and sustainable systems. The first two reports cover Public Goods Funding and Prediction Markets. Additional reports could include SocialFi, DePin, DeSci, ReFi, etc. | Monthly |
| Intervention Cohort I and II | Select and manage cohorts I and II for on-chain tech interventions and ensure successful implementation of interventions. Deliver final case studies documenting the outcomes of interventions. | April 2025 - December 2025 |
| Mechanism Institute Event at EthCC[8] | Plan and execute a successful event for 50+ participants. Post-event report, including attendee feedback and key outcomes. | July 2025 |
| Mechanism Library v2 & Interventions Methodology | Expanded library platform with more interactive UX and integrate methodology for leveraging the mechanisms in systems design and real-world interventions. | Oct 2025 |
Impact Measurement and Reporting
Short-term Outcomes (0-3 months):
- Completion of Mechanism Library v1, including completed discussion and at least one case study for each of the 130 mechanisms
- Publication of three research reports validated by relevant experts: Public Goods Funding, Prediction Markets, + 1 more
Mid-term Outcomes (3-6+ months):
The Mechanism Library will become a comprehensive resource, enabling web3 teams to implement more effective on-chain systems. Our research reports will provide actionable insights and mechanism solutions, driving innovation across different web3 verticals. These resources will lead to gradual improvements in mechanism design across web3, including smarter incentive systems, governance mechanisms, funding models and more. The Mechanism Institute will emerge as a thought leader, fostering a community of practice around advanced cryptoeconomic design.
Long-term Impact (5+ years):
The ultimate vision of the Mechanism Institute is to empower communities worldwide to design and deploy mechanisms that address complex challenges in any domain, contributing to a more decentralized, efficient and pluralistic world. We envision on-chain mechanisms in use across every area of human coordination, far beyond today’s limited landscape of web3 use-cases. Beyond the library and research reports, Mechanism Institute will have contributed to this revolution through a comprehensive methodology for applying mechanisms to real-world problems alongside training programs to equip the next generation of mechanism designers with these tools.
Outcomes Measurement:
- Number of mechanisms with full discussion page
- Number of searches per week in the mechanism library
- Number of researchers who have contributed entries to the library
- Number of published open-source research reports
- Number of seminars and total number of participants/viewers
- Number of on-chain interventions and people impacted by interventions
Interim Reporting
We will provide monthly updates on our progress, which will also serve as milestone verification. We will provide direct proof of deliverables and impact.
Sustainability Plan
Over time we plan to transition our economic model away from grants by experimenting with the following:
- Research Partnerships: Form paid research partnerships with blockchain projects, academic institutions, or think tanks to explore specific areas of mechanism design and implementation (see Gitcoin example above).
- Educational Courses: Develop and offer paid training seminars or bootcamps in our on-chain mechanism interventions methodology for individuals and organizations.
- Dual Licensing Model: Develop open-source mechanism implementations that can be licensed to commercial actors for a fee, while remaining free for open-source projects, researchers and other non-commercial actors.
- Mechanism Certification Program: Create a certification program for mechanism designers or implementers, offering courses and exams for a fee, which could become an industry standard.
Case Studies and Testimonials
We will use blog posts, social media posts, including audiovisual resources, to showcase our outputs such as library entries, research reports, and on-chain tech interventions. We will collect testimonials through feedback forms, interviews and in-person events to better understand the impact of our outputs on the work of mechanism practitioners.
Advancing Values of Freedom and Privacy & Supporting Decentralization
Mechanism Institute advaces the values of freedom and privacy and supports decentralization of power by democratizing access to cryptoeconomics and on-chain mechanisms, including privacy-preserving mechanisms.
Team Information
ori (founder)
- (2022 - onwards) Economic Design at Agentcoin.
- (2020 - 2022) Coauthor of DAO Model Law, an international regulatory framework for DAOs.
- (2019 - 2023) Cofounder of dOrg, the first services DAO and first on-chain business.
sofía (research manager)
- (2022 - onwards) Ph.D. candidate at Université-Paris II on blockchain technology, law, identity, and citizenship.
- (2022 - onwards) Researcher at BlockchainGov, an ERC-funded research with Principal Investigator and advisors from the Berkman Klein Center at Harvard University focused on blockchain governance, trust, and legitimacy.
- (2024 - onwards) Co-organizer of the 2024 SOAM Residency on Network Sovereignties.
- (2017 - 2021) Researcher at Democracy Earth Foundation on topics such as liquid democracy, self-sovereign identities, and Universal Basic Income.
Social Proof
Milestones
- Launched Mechanism Library website with 130 on-chain mechanisms and 300+ implementation examples, including 15 fully-fledged entries.
- Conducted 8 seminars (online & IRL) teaching tools & practical strategies for designing better mechanisms.
- Published public research project with Gitcoin.
- Won hackathon at Zuzalu 2023 for developing a novel Smart Treaty primitive to enable on-chain community-to-community agreements.
- Published Mechanism Impact Measurement, a forkable workbook to model the ROI of mechanisms, including the cost of capital and demand forecasting.
- Published Mechanism Canvas, a visual template for designing systems in a way that ensures a shared understanding of system architecture & goals.
- Developed Slashing Engine, a cryptoeconomic primitive to solve sybil attacks in Gitcoin passport & other claims verification problems.
Public Appearances & Contributions
- Bonding Curve Research Group [talk] (2023)
- Metagov [talk] (2023)
- MetaFest [talk] (2023)
- Time Magazine [article] (2022)
- Princeton [lecture] (2022)
- Stanford [lecture] (2021)
- Nasdaq [article] (2021)
Transparency
Funds will be held on-chain at the provided address until they are used to pay contracted service providers directly from that address.
Other Funding
27329 OP from Optimism RetroPGF.
$80,000 from Gitcoin sponsorship.
~$5k from Gitcoin grant rounds.