Getting Started
How FundLoop Works
Understand the mechanics of the 1% pledge and citizen salary
Last updated September 20, 2026
FundLoop creates a regenerative economic loop by connecting projects that contribute a portion of their revenue with users who receive compensation for being active, verified participants. This section explains how the flow of value works, who is involved, and how distributions are calculated.
The 1% Pledge
Projects that join FundLoop commit to contributing 1% of their revenue each month to the ecosystem. This can include:
- Product revenue
- Grant funding
- Token inflows or treasury activity
These contributions are reported monthly and fund two main outputs:
- **Citizen salaries** for verified active users
- **Public goods** and shared services across the ecosystem
Citizen Salary Distribution
Each month, FundLoop distributes contributed funds through a two-pass system:
1. Project Allocation Pass
- Each project nominates users and assigns them fractional values (from 0 to 1) based on their level of engagement.
- The user receives the highest assigned amount from any one project they are nominated by.
- Any overlapping contributions are returned to a communal pool.
2. Ecosystem Allocation Pass
- Remaining funds in the communal pool are distributed equally to all eligible users, using a square root multiplier based on how many different projects they engaged with during the month.
- Only users who are validated through Cubid and have engaged with at least two projects are eligible.
This structure rewards both deep and broad engagement, while ensuring no double-counting of value across projects.
User Validation and Eligibility
Only verified humans are eligible for citizen salaries. Validation is handled via Cubid, which allows users to link credentials like:
- Phone or email
- Social accounts (e.g., GitHub, Twitter)
- Gitcoin Passport or wallet-based credentials
Users must meet a minimum validation threshold and demonstrate ongoing activity to qualify for payouts.
Benefits for Projects
Projects benefit by:
- Gaining access to a pool of real, verified users
- Incentivizing consistent usage through direct payouts
- Demonstrating alignment with a broader regenerative economy
- Building trust through transparent contribution and nomination patterns
Summary
FundLoop works by turning small recurring contributions into a sustainable funding system for human participation and public infrastructure. The more consistently projects contribute and users engage, the more the loop grows—and the more value it generates for everyone involved.
For more on how to get started, see the [Project Onboarding](/docs/project-onboarding) and [User Guide](/docs/user-guide) documentation.