Merit Systems raises $10 million in partnership with a16z crypto and Blockchain Capital

Merit Systems, a startup focused on changing the economics of open source software development, has raised $10 million in a seed funding round co-led by Andreessen Horowitz’s crypto fund and Blockchain Capital.

Merit is developing an attribution protocol for open source projects—a system that tracks contributions and rewards contributors in proportion to the value they create.

According to its founders, the protocol seeks to create a sustainable economic model for open source projects. The main idea behind the project is to reward and reward those who contribute to the project based on their value, removing the dependence on volunteer contributions or corporate support.

“Merit adds rich attribution information to software version control systems like GitHub. This allows capital sources to direct funds to codebases and directly incentivize developers,” the project said in a note shared with The Block.

The founders, including Ryan Sproul, Sam Ragsdale and Mason Hall, have backgrounds in prominent tech and crypto circles. Sproul previously worked at Blockchain Capital, while Hall and Ragsdale have experience in investment teams at Andreessen Horowitz.

The $10 million seed round is valued at $55.5 million.

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