> For the complete documentation index, see [llms.txt](https://aruna-1.gitbook.io/aruna-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://aruna-1.gitbook.io/aruna-docs/understanding-the-problem/problem.md).

# The Problem

## Public Goods Funding Crisis

Open-source software, blockchain infrastructure, and Ethereum ecosystem tools provide massive value to everyone, but funding them remains a critical challenge.

### Why Current Models Fail

**1. One-Time Donations**

* Users donate once and forget
* No recurring support
* Unpredictable for project planning

**2. Grant Applications**

* Highly competitive
* Inconsistent approval
* Requires constant reapplication
* Time-consuming for projects

**3. Donor Fatigue**

* Requires repeated user action
* Decision fatigue sets in
* Participation declines over time
* Projects lose funding unexpectedly

**4. Retroactive Funding**

* Only rewards past work
* Doesn't fund future development
* Creates uncertainty for teams

## The Missing Piece

What's needed is a system that:

* ✅ Generates **recurring** funding automatically
* ✅ Requires **one-time** user action
* ✅ Creates **predictable** revenue for projects
* ✅ Maintains **competitive** returns for supporters
* ✅ Operates **transparently** on-chain

Traditional models ask users to sacrifice returns or make repeated altruistic choices. This doesn't scale.

## Real-World Impact

**Current State:**

* Gitcoin rounds raise \~$1M per quarter
* Requires active user participation every 3 months
* Participation drops 20-30% each round
* Projects can't plan long-term budgets

**What Projects Need:**

* Monthly recurring revenue
* Predictable funding streams
* Independence from donor decisions
* Sustainable multi-year support

Aruna solves this by making public goods funding a built-in consequence of earning yield, not a separate decision.